FTC Continues Shake-Up Of Merger Review Process

Dealmakers take note: the unprecedented volume of merger filings over the last several months combined with continued changes at the Federal Trade Commission (FTC) concerning merger filings translates into increased uncertainty and potential for delay prior to closing.

In February, citing the increased number of merger filings, the FTC suspended the practice of early termination. Early termination allows certain reportable deals that pose little risk of competitive harm to close before the end of the standard 30-day window after filing a notification under the Hart-Scott-Rodino (HSR) Act. While the suspension was described as temporary, and the FTC's website published two early terminations in July, it remains in effect today. Until the suspension is formally lifted, transacting parties should expect to wait at least 30 days after an HSR filing before closing.