On February 1, 2013, the Federal Trade Commission (FTC) published a notice of proposed rulemaking in the Federal Register to amend the Rules under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 regarding the withdrawal of a premerger notification filing. The amendments would add a new §803.12 “Withdraw and refile notification,” to the HSR Rules.Continue Reading FTC Proposes Amendments To The Hart-Scott-Rodino Rules Regarding Withdrawal Of A Premerger Notification Filing
One does not usually associate the possibility of criminal penalties with the Hart-Scott-Rodino Act premerger review process. However, on May 3, 2012, the U.S. Department of Justice ("DOJ") announced that an executive of a South Korean company agreed to plead guilty to obstruction of justice charges and to serve five months in prison for altering documents filed with the DOJ and the Federal Trade Commission ("FTC") in connection with a proposed merger.Continue Reading Tampering with documents in connection with a merger investigation can land you in jail!
1. Higher Thresholds For HSR Filings
On January 24, 2012, the Federal Trade Commission announced revised, higher thresholds for premerger filings under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. The filing thresholds are revised annually, based on the change in gross national product and will be effective thirty days after publication in the Federal Register. Publication is expected within a week, so the new thresholds will most likely become effective in late February 2012. Acquisitions that have not closed by the effective date will be subject to the new thresholds.Continue Reading Higher Filing Thresholds for HSR Act Premerger Notifications and Interlocking Directorates Announced
1. New Thresholds For HSR Filings
The Hart-Scott-Rodino Antitrust Improvements Act of 1976 (“HSR Act”) imposes notification and waiting period obligations on parties to certain mergers, acquisitions, formations of joint ventures and unincorporated entities, and other transactions. Parties to an HSR-reportable transaction must notify the federal government and observe a waiting period, usually 30 days, before completing the transaction. A transaction is generally reportable if it meets a Size of Transaction test and a Size of Person test. Each “person” who is a party to an HSR-reportable deal must file an HSR notification with the Department of Justice Antitrust Division and the Federal Trade Commission.
Continue Reading New Filing Thresholds for HSR Act Premerger Notifications and Interlocking Directorates Announced