Pre-Merger Information Sharing: The FTC Weighs In

A month ago, we covered recent European competition law developments on pre-merger information sharing and "gun jumping" among merging parties. In a timely reminder that the same questions also are relevant in the United States, the Federal Trade Commission (FTC) recently issued a blog post on antitrust pitfalls during pre-merger discussions and due diligence. The post provides practical guidance to merging parties and is highly recommended reading for M&A practitioners.

Key Points:

• The FTC acknowledges that merging parties "typically have a legitimate need to access detailed information about the other party's business" in merger negotiations and integration planning.
• But when the parties are competitors, they must "ensure competitive vigor in the short term and also in the event the merger does not happen." To manage information sharing risk, the FTC recommends that merging parties "set up a process and police it," and provides guidance on how disclosing