FTC Announces New Reporting Thresholds For 2017 Under The Hart-Scott-Rodino Antitrust Improvements Act (HSR)

Each year, the Federal Trade Commission (FTC) revises the thresholds that determine whether companies are required to notify the FTC and the Antitrust Division of the Department of Justice (DOJ) about the terms of a transaction (merger or acquisition of stock or assets) under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR). The annual revisions are intended to accommodate changes to the gross national product. The HSR notification process is intended to highlight those transactions that are likely to have the most significant commercial impact, and thus, affords the government time to consider the potential competitive (adverse) effects of the transaction prior to its closing. If a transaction is reportable, the parties to the transaction are required to report the transaction and strictly observe a waiting period before consummating the transaction.