US rejects steel merger on marketing grounds
The Justice Department day rejected Wednesday a planned merger by Republic Steel Corporation and LTV Corporation, saying it would give the combined company too much market power in the steel industry. (The merger would have made the resultant corporation the second-largest steel company, after United States Steel.)
Assistant Attorney General J. Paul McGrath said the government will file suit if the companies go ahead with the merger. But he suggested they could modify their plans significantly and present a new merger proposal for review.