In an update from our previous reporting on July 7, it seems that the Federal Trade Commission (FTC), with the agreement of the U.S. Department of Justice, has decided to extend the comment deadline on changes to the Hart-Scott-Rodino (HSR) Act of 1976’s premerger notification process. These proposed changes would be sizable and demand a substantial increase in the amount of information companies would have to submit as part of an HSR filing.
The Notice of Proposed Rulemaking (NPRM), which was first released by the FTC and the Department of Justice, appears to be aimed at overhauling the existing premerger notification framework under the HSR Act. This Act, which has been in effect since 1976, is an integral part of U.S. antitrust law and any changes to it could have profound effects on the way mergers and acquisitions are carried out in the country.
The changes proposed in the NPRM would compel filers to submit extensive additional information that is not currently needed for an HSR filing. While the exact nature of the required information is yet to be clarified in detail, it is already causing concerned discussions among big corporations and law firms. The extension to the comment deadline suggests that the enforcement agencies are likely expecting a substantial number of responses.
Details of these changes and aspects of the extended deadline can be found in this
JD Supra article which provides more in-depth analysis and updates on this ongoing development.
Proceeding slowly and prudently, the antitrust enforcement agencies, by extending the comment period on the proposed HSR Act changes, are taking into account the extensive implications these changes may bear on corporations, the M&A landscape, and antitrust law as a whole.
The coming weeks and months will provide more clarity as the responses to the proposed changes get reviewed and any resulting adjustments to the NPRM are disclosed.
We will continue to monitor this issue and give updates on any new developments. Keep an eye on this space for the most recent news on the HSR Act changes.