Antitrust Authorities' Skepticism Of Merger Remedies Causes Headwinds For Dealmakers

The number of deals cleared with conditions fell sharply in 2024. Many antitrust authorities remained skeptical of whether merger remedies can effectively address antitrust concerns, choosing instead to challenge and ultimately seek to block M&A. Paradoxically, where remedies were agreed, authorities were increasingly creative. Over half of cases contained behavioral commitments. We are now on the precipice of a paradigm shift. A more permissive merger control environment should mean less resistance to merger remedies. All things being equal, dealmakers should have an easier path to clearance.

A total of 69 deals were cleared subject to remedies in 2024. This is a steep drop from 2023. Even accounting for the fact that 20 of the 2023 remedy cases were attributable to two series of U.K. veterinary practice transactions, there was still a year-on-year decrease.