FTC Announces Proposed Changes to Second Request Process, But…

On September 28, 2021, the Federal Commerce Fee (FTC) issued a blog post saying a number of adjustments to how the FTC will examine mergers and acquisitions and the way it will method second-request negotiations. The weblog publish acknowledged that the method adjustments had been wanted to handle the “surge in merger filings” overwhelming the FTC’s restricted assets and reiterated the FTC’s place that it’s going to be certain that merger critiques are “more comprehensive and analytically rigorous.” As well as, the weblog publish states that FTC workers will solely contemplate requests for any modifications of a second request after the occasion beneath investigation has supplied “certain foundational information.” Events should additionally present data on the e-discovery instruments they are going to be utilizing, and the FTC is discontinuing the prior choice of permitting events to submit a partial privilege log. 

Curiously, Commissioner Noah Phillips publicly stated that the brand new processes come at “precisely the wrong time” given the “recent uptick in merger activity.” Certainly, Commissioner Phillips argued that in impact the businesses are defying the legislative directive of the Hart-Scott-Rodino course of in that they “tax transactions through uncertainty, expense, and government fiat. This will leave companies and their customers and suppliers in limbo, cause assets to dissipate, and sometimes lead to the abandonment of deals that benefit consumers.”

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