3 ms·
Does the ~S~E~C~ (edit: FTC) have to approve? If so, have they? https://en.wikipedia.org/wiki/Hart%E2%80%93Scott%E2%80%93Rodino_Antitrust_Improvements_Act http
by nailer 6y ago
Does the ~S~E~C~ (edit: FTC) have to approve? If so, have they?
https://en.wikipedia.org/wiki/Hart%E2%80%93Scott%E2%80%93Rodino_Antitrust_Improvements_Act https://en.wikipedia.org/wiki/Hart%E2%80%93Scott%E2%80%93Rod...
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The general rule is that a filing is required if three tests are met: *
(1) the transaction affects U.S. commerce;
(2) either
(a) one of the parties has annual sales or total assets of $151.7 million[3] or more (as of 2014: in 2012 this threshold amount began increasing periodically under the law), and the other party has sales or assets of $15.2 million[3] or more (as of 2014: this amount adjusts periodically) (where an acquired person is not engaged in manufacturing, only its total assets, not its sales, are counted, unless its sales are over $151.7 million[3]); or
(b) the amount of stock the acquirer has is valued at $272.8 million or more (as of 2012: amount adjusts periodically) at any time; and
(3) the value of the securities or assets of the other party held by the acquirer after the transaction is $68.2 million or more (as of 2012: amount adjusts periodically).[4] The 2018 rules raise this amount to US$84.4 million [5]
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* IANAL, but I worked somewhere that was charged with violating the act and it's any of the three, not all of them.
- staysaasy 6y agoThey will need to for a transaction of this size, and the approval process is most likely ongoing (and will continue for the next few months).
- lvzwilson 6y agoFYI, it is not the SEC that approves mergers with respect to antitrust concerns, but rather the FTC or DOJ. See https://www.ftc.gov/news-events/media-resources/mergers-and-competition/merger-review https://www.ftc.gov/news-events/media-resources/mergers-and-...
- advisedwang 6y agoI'd like to see the FTC get involved. Seems like this is going to reduce competition.
- toomuchtodo 6y agohttps://www.ftc.gov/contact https://www.ftc.gov/contact
- pc86 6y agoAny merger or acquisition by definition reduces competition, but these two are far from the only players in the IDMS market.
- wpietri 6y agoI think that's often true, but it's not true by definition. For example, if a large company in industry X buys a small company in industry Y as a way of entering a market, competition can go up in industry Y as the small company now has increased capacity to compete with the bigger players.