DOJ Invokes Arbitration Option For Merger Review

After letting the option go unused for more than 20 years, the Antitrust Division of the Department of Justice recently announced it would use arbitration to settle its challenge of the proposed merger of two aluminum producers. In a press release last month, the Division acknowledged that this is the frst time its history that it has used arbitration rather than litigation as a means to resolve an antitrust challenge. The emergence of arbitration as an alternative to litigation raises questions about its proper mechanisms and its potential impact on the merger review process.

Novelis-Aleris Agreement And Rationale

On Sept. 4, the DOJ challenged Novelis's proposed $2.6 billion purchase of Aleris, citing concerns that the combination of two of the four North American producers of aluminum for automobile bodies would result in higher prices. In the same press release, the Antitrust Division stated that it had agreed with the defendants to refer the matter to binding