Mergers and acquisitions are frequently viewed as a critical strategy for business growth and expansion. However, they also present significant legal challenges and regulatory scrutiny. Recently, three situations have surfaced that could indicate a shift in regulators’ stance on settlement within this context: Amgen, Black Knight, and Assa Abloy.
Assistant Attorney General Jonathan Kanter, for the Department of Justice’s (DOJ) Antitrust Division, has expressed his skepticism about merger remedies and settlements. According to him, “Merger remedies short of blocking a transaction often miss the mark.”As reported, Kanter believes that an injunction blocking a transaction is the most dependable method for preserving competition.
Chair Khan of the Federal Trade Commission (FTC) shares this sentiment. She confirmed that “[the agency is] going to be focusing our resources on litigating…” seeming to imply a potential increase in pushback against deals that may have previously slipped through more easily.
The cases in point are:
- Amgen’s acquisition of Rodeo Therapeutics Corporation
- Black Knight’s proposed merger with Optimal Blue
- ASSA ABLOY’s planned acquisition of the Hardware and Home Improvement Group of Spectrum Brands
Notably, all three faced legal issues related to proposed mergers, and the outcomes might signify the early signs of an evolving trend.
Legal professionals, particularly those working in large corporations and law firms, should pay close attention to these cases, as they could indicate a tide of change in merger settlements and regulatory attitudes towards them.