HSR Considerations For Chinese Investors In U.S. Companies

When Chinese traders are contemplating US targets, you will need to bear in mind the necessities of the Hart-Scott-Rodino Antitrust Enhancements Act of 1976 (“HSR Act”). For offers assembly sure thresholds, the HSR Act requires the events to submit HSR filings to FTC and DOJ, pay a submitting price, and wait 30 days earlier than closing. The aim of that is to allow FTC and DOJ to analyze the potential antitrust and competitors points earlier than the transaction closes. Failure to make a submitting and/or observe the 30-day ready interval can have extreme penalties. At the moment, the utmost civil penalty for noncompliance is $43,792 per day.

当中国投资者考虑美国投资目标时,需注意1976年《哈特-斯科特-罗迪诺反垄断改进法案》(“HSR法案”)的各项要求。对于那些符合特定标准的交易,HSR法案要求各方向联邦贸易委员会和司法部提交HSR申报材料、支付申报费,并在交割前等待30天。如此安排的目的是使得联邦贸易委员会和司法部能在交易交割前调查潜在的反垄断和竞争问题。不进行申报或不遵守30天的等待期将会产生严重后果。目前对不遵守规定者最高可处每天43792美元的民事罚款。

In normal, an HSR submitting is required when a transaction meets the “size of transaction” and “size of persons” assessments. The thresholds for these assessments change yearly. At the moment, solely offers valued at $92 million or extra meet the scale of transaction check; offers valued at lower than $92 million should not reportable. For offers valued at $92 million or extra, however lower than $368 million, the scale of individuals check should even be happy. In normal, which means that the last word mum or dad entity of 1 occasion to the deal has at the very least $184 million in property or annual gross sales, and the last word mum or dad of the opposite occasion has at the very least $18.4 million in property or annual gross sales. For offers valued at $368 million or extra, the scale of individuals check doesn’t apply.

一般而言,当一项交易符合“交易规模”和“参与方规模”要件时,就必须进行HSR申报。这两项标准的具体数值每年都在变化。目前,只有交易价值达到9200万美元或以上的交易符合“交易规模”要件的要求;价值低于9200万美元的交易则不需要申报。交易价值达9200万美元或以上但低于3.68亿美元的交易,则还须满足“参与方规模”要件的要求。一般来说,这意味着交易一方的最终母公司至少拥有1.84亿美元的资产或年销售额,同时交易另一方的最终母公司至少拥有1840万美元的资产或年销售额。对于交易价值达到3.86亿美元或以上的的交易,“参与方规模”要件则不适用。

The HSR panorama is altering quickly. There have been extra HSR filings this 12 months than ever earlier than, and the federal government is struggling to maintain up. This 12 months, there have been a number of essential HSR developments, together with:

HSR法案的具体适用正在迅速变化。今年的HSR申报数量比以往任何时候都多,政府正在努力适应。今年,HSR法案有几个重要的发展,包括:

  1. Suspension of early termination program. In February 2021, the FTC and DOJ suspended the “early termination” program, which has not been resumed. Beforehand, events might request that the antitrust businesses terminate the HSR ready interval in lower than 30 days, and the antitrust businesses had the discretion to grant “early termination” to offers posing no aggressive considerations.

暂停“提前终止”程序。2021年2月,联邦贸易委员会和司法部暂停了“提前终止”程序,至今尚未恢复。此前,交易各方可以要求反垄断执法机关在不到30天内终止HSR审查等待期,反垄断执法机关有权酌情“提前终止”不具影响竞争效果的交易的等待期。

  1. FTC begins issuing close-at-your-own-risk letters. In August 2021, the FTC introduced that when it runs out of time to totally examine a deal earlier than the top of the HSR ready interval, it might challenge a letter informing the events that the FTC might proceed to analyze the deal after closing, and if the events select to shut, they achieve this “at their own risk.”

联邦贸易委员会开始发布“自担风险交割”函。2021年8月,联邦贸易委员会宣布,当它在HSR审查等待期结束前尚未全面调查该项交易时,它可能会发信通知交易各方:联邦贸易委员会可能会在审查等待期结束后继续调查该交易,如交易各方决定进行交割,则它们将“自担风险”。

  1. Payoff of debt benefitting a promoting shareholder should now be included in dimension of transaction. In August 2021, the FTC introduced that the payoff of debt ought to be included within the HSR dimension of transaction the place a promoting shareholder advantages from the payoff of debt.

现在必须将有利于卖方股东的债务清偿计入交易规模。2021年8月,联邦贸易委员会宣布,如果发生债务清偿且卖方股东从该债务清偿中受益,则该笔债务清偿应当计入HSR审查的交易规模要件。

  1. FTC examine of 10 years of unreported massive tech offers signifies further HSR adjustments could also be coming. In September 2021, the FTC introduced the outcomes of a examine of over 600 unreported massive tech offers from 2010 to 2019, and FTC commissioners commented on the necessity to shut “loopholes” within the HSR guidelines.

联邦贸易委员会对过去10年未申报的大型科技交易有关的调查表明,HSR审查可能将会出现更多的变化。2021年9月,联邦贸易委员会公布了对2010年至2019年间600多宗未申报的大型科技交易的调查结果,联邦贸易委员会主席评论说有必要填补HSR审查规则的“漏洞”。

  1. FTC continues to implement HSR guidelines in opposition to particular person shareholders.  In September 2021, the FTC assessed a civil penalty of $637,950 in opposition to CEO for failing to file an HSR kind earlier than buying inventory in his firm by means of the vesting of efficiency inventory items, serving as an essential reminder to executives and particular person shareholders that HSR necessities apply to them as effectively.

联邦贸易委员会将继续对个人股东HSR审查规则的执法。2021年9月,联邦贸易委员会就公司的首席执行官通过绩效期权成熟从而购买其所在公司的股票前却未提交HSR申报的事实,判处637,950美元的民事罚款。这给广大高管和个人股东们敲响了警钟:HSR审查要求对于他们也一样适用。

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