Wednesday, 11 March 2009 17:00

CCC-MITCHELL Mutually Agree to Terminate Merger

CCC Information Services Inc., of Chicago, and Mitchell International, Inc., of San Diego, announced March 11 that they will no longer pursue the merger of the two companies.

“In light of the court's decision, we have jointly decided to terminate the merger. A year ago when we announced the transaction, our stated objective was to deliver greater innovation to our customers and partners.

This theme has remained a constant and will continue to be at the forefront of our efforts," stated Githesh Ramamurthy, Chairman and CEO of CCC. “Serving our customers has always been our primary focus. We have reached the point in the regulatory process in which our customers, employees and shareholders are best served by continuing as independent companies,” stated Alex Sun, President and CEO of Mitchell International.

On Nov. 25, 2008, the FTC filed suit to block the merger of CCC and Mitchell, charging that the transaction would hinder competition in the market for electronic systems used to estimate the cost of collision repairs, known as "estimatics," and the market for software systems used to value passenger vehicles that have been totaled, known as total loss valuation systems.

"The court's decision today was a triumph for consumers and reaffirms the vital role competition plays in our economy," said David P. Wales, acting director of the FTC's Bureau of Competition. "We brought this case because of the impressive body of evidence developed by staff demonstrating that the combination of these two competitors would substantially lessen competition, ultimately leading to higher prices and less innovation for consumers."