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UPDATE 2-U.S. files antitrust lawsuit against Parker-Hannifin takeover

(Adds detail on issue, proposed remedy; quote)

WASHINGTON, Sept 26 (Reuters) - The U.S. Justice Department on Tuesday filed an antitrust lawsuit challenging Parker-Hannifin Corp's purchase of Clarcor Inc.

The lawsuit, brought in U.S. district court in Delaware, was filed out of concern that the $4.3 billion transaction would mean higher prices, worse service or less innovation in the market for aviation fuel filtration systems and products.

The department asked the court to order Parker-Hannifin to sell part of its aviation filtration business on the grounds that it and Clarco had been the only two U.S. manufacturers of the filtration products.

Parker-Hannifin, whose motion and control systems are used in a variety of industries, announced the deal to buy Clarcor in December. It closed in February.

"Parker-Hannifins acquisition of its only U.S. rival for these types of aviation fuel filtration products has effectively created a monopoly in these critical safety products," Andrew Finch, the acting head of the Justice Department Antitrust Division, said in a statement.

Parker-Hannifin did not immediately respond to a request for comment.

Its shares ended regular trading on Tuesday down 1.6 percent at $173.97. (Reporting by Diane Bartz; Editing by Paul Simao and Susan Thomas)