New Thresholds for Triggering U.S. M&A Review Effective Feb. 20
The 2015 annual adjustment to the thresholds that trigger automatic FTC and Justice Department review of a merger or acquisition is the smallest in years, said Fletcher Heald wireless attorney Raymond Quianzon on the law firm's blog. The increase from…
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the previous threshold is just half of 1 percent, he said. Under the latest adjustment, federal agencies will review deals where the total value exceeds $305.1 million or where the total value exceeds $76.3 million and one party has total assets of at least $15.3 million and the other party has assets of $152.5 million, he said. This monetary threshold trigger of FTC and Justice review is separate from the FCC review process, which applies to most communications-related deals, Quianzon said. “Once those lines are crossed, the prospect of additional (and considerable) time, expense and hassle to navigate the federal review process is a virtual certainty.” The new thresholds take effect Feb. 20.