New HSR Requirements Will Dramatically Increase The Burden On Filers

Key Points

• The good news about the long-awaited new HSR rules is that they are not as burdensome as the proposed HSR rules that came out last summer. But while the new HSR rules walk back some of the Antitrust Agencies' more onerous proposals, they nevertheless promise to substantially increase the burden on HSR filers. The new HSR rules are expected to go into effect in late January or February.
• Compared to the current requirements, some of the most significant changes include:
  • Broadening the scope of documents required by (1) expanding the scope of individuals to be searched to include the "supervisory deal team lead," (2) requiring the submission of draft "Item 4" documents that go to an individual director (or equivalent, such as an investment committee member), and (3) requiring certain ordinary course business plans provided to the CEO or to the board of directors where there is a horizontal overlap between the parties.