Justice Dept. Won’t Object to GE’s Purchase of RCA
Associated Press
WASHINGTON —
The Justice Department on Wednesday endorsed General Electric’s proposed purchase of RCA for $6.28 billion, raising no objections to the two companies’ overlapping consumer electronics business.
The combination, which still faces approval by the Federal Communications Commission, would be the largest non-oil acquisition in U.S. history. RCA is the parent of National Broadcasting Co.
The Justice Department did say it believes that the purchase would violate a section of the Clayton Act because one portion of GE’s business is in the production and sale of vidicons, a type of electron tube in TV cameras.
GE, however, has agreed to divest its vidicon business within a short period of time to solve that problem.
