DEFINITION of 'Celler-Kefauver Act'
One of several U.S. laws designed to prevent certain mergers and acquisitions which would lead to the creation of a monopoly or otherwise significantly reduce competition. The Celler-Kefauver Act was passed in 1950 to create additional restrictions in addition to the Clayton and Sherman Antitrust Acts.
BREAKING DOWN 'Celler-Kefauver Act'
Former antitrust legislation provided controls on certain mergers and acquisitions, but only in the case of buying outstanding stock. Antitrust rules could thus be largely circumvented by only buying the assets of the target corporation. The Celler-Kefauver Act prevents this work-around measure thus strengthening anti-trust rules in the United States.