Overview
- PlayPower and BCI Burke announced this week that they have terminated their February merger agreement, saying the time and expense of a prolonged legal fight would be better spent on their businesses.
- The abandonment followed an October lawsuit by the Federal Trade Commission and a bipartisan group of 12 state attorneys general that sought to block the acquisition in federal court.
- State officials alleged the merger would have combined two of the top five suppliers in a market where five firms control roughly 85–90% of U.S. commercial playground equipment sales.
- Regulators warned that reduced competition could drive higher prices and lower quality for playgrounds bought with taxpayer funds by schools, parks and recreation departments.
- With the deal called off, the coalition has moved to dismiss the Northern District of California lawsuit and the outcome is likely to sharpen antitrust scrutiny of future deals in public-procurement markets.