HSR Thresholds To Increase On February 27, 2012

The US Federal Trade Commission has announced that it approved the new jurisdictional thresholds required by the 2000 amendment to the Hart- Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act). Under the amendment, the FTC is required to revise the thresholds annually, based on the change in gross national product. The new thresholds will be effective on February 27, 2012 and will affect all transactions closing on or after that date.

The new thresholds will change the applicable tests as follows:

1. Increase the minimum size-of-transaction test to $68.2 million, this means acquisitions valued at $68.2 million or less will not be reportable;
2. Increase the size-of-transaction test to $272.8 million, this means acquisitions of $272.8 million or more will be reportable unless an exemption applies;