The Federal Trade Commission (FTC) Finalizes Changes to Premerger Notification Form

The Federal Trade Commission voted unanimously to finalize changes to the premerger notification form and associated instructions and the premerger notification rules implementing the Hart-Scott-Rodino (HSR) Act.

The final rule implements changes that will improve the ability of the FTC and the Antitrust Division of the U.S. Department of Justice (DOJ) to detect illegal mergers and acquisitions before consummation. The rule requires additional information to determine which deals require an in-depth antitrust investigation, including through the issuance of Second Requests.

Here are the key points:

Increased Information Requirements: Companies involved in mergers and acquisitions must now provide regulators with more detailed information. This includes data on business operations, pipelines, and impacted labor markets.
Enhanced Scrutiny: The new rules aim to improve the FTC and the Department of Justice’s ability to detect illegal mergers and acquisitions before they are finalized.
Modern Market Realities: The updated requirements consider modern market dynamics such as complex corporate structures, market consolidation, and the rise of vertical mergers.
Extended Review Process: Filers must submit additional information, likely leading to a more demanding and extended antitrust regulatory filing process.

These changes are part of a comprehensive overhaul of the premerger notification program under the Hart-Scott-Rodino Antitrust Improvements. The goal is to ensure that regulatory agencies can better assess the competitive effects of proposed mergers and acquisitions.

LEARN MORE – FTC

LEARN MORE

Posted In: Resource Information