Celler-Kefauver Antimerger Act

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Celler-Kefauver Antimerger Act

An American antitrust law passed in 1950 that closed a major loophole in the Clayton Act. While the Clayton Act prohibited mergers that reduced competition, it allowed companies to buy individual assets of competitors. Some companies did this to such an extent that it reduced competition, which had the potential to effectively sideline the Clayton Act. The Celler-Kefauver Act closed this loophole, giving the government the power to stop vertical mergers and asset acquisitions regarded as reducing competition. It is often simply called the Antimerger Act.
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Celler-Kefauver Antimerger Act

A 1950 federal antitrust law that updated the Clayton Act by severely restricting anticompetitive mergers resulting from acquisition of assets.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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The Supreme Court disallowed the merger of Von's and Market Basket (both retail grocery chains in the Los Angeles area), stating that the "Celler-Kefauver Anti-Merger Act requires not merely an appraisal of immediate impact of merger upon competition, but prediction of its impact upon competitive conditions in the future."