In April 2021, the FTC completed its assessment of the acquisition of AMECO Caribbean Inc. by JAMECO Equipment Company Limited. The acquisition initially raised concern for competition in the markets for (i) fleet management; (ii) sale of commercial equipment/vehicles; and (iii) lease of commercial equipment/vehicles in Jamaica. Accordingly, the FTC concluded that the Asset Sales Agreement breached section 17 of the FCA, which prohibits agreements that contain provisions that have as their purpose the substantial lessening of competition or are likely to have the effect of substantially lessening competition in a market.
The FTC determined that the Agreement which effected the acquisition contained a restraint of trade provision, which has as its purpose the substantial lessening of competition in the relevant market and which did not qualify for exemptions under the FCA. The FTC, therefore, recommended that the restraint of trade clause be limited to no more than three years to not be in breach of the FCA.
On May 7, 2021, JAMECO and AMECO entered a Settlement Agreement and Release (“the Release”). The Release discharged JAMECO and AMECO of some of their obligations, as outlined in the Asset Sales Agreement, including the restraint of trade provision.
Accordingly, the FTC revised its conclusion in light of the Settlement Agreement & Release; as the revised Asset Sale Agreement does not breach any provisions of the FCA.