What does the Hart-Scott-Rodino Act require?

The HSR Act requires that parties to mergers and acquisitions, including acquisitions of voting securities and assets, notify the DOJ and the FTC, and observe a statutory waiting period if the acquisition meets specified “size-of-person” and “size-of-transaction” thresholds and doesn’t fall within an exemption to the …

What impact does the Hart-Scott-Rodino Antitrust Improvements Act have on antitrust law?

The law requires companies intending to merge to file an HSR Form, also called a “Notification and Report Form for Certain Mergers and Acquisitions” and generally known as a premerger notification report. 2 This gives regulators an opportunity to review the proposed merger based on antitrust laws.

What is the purpose of an HSR filing?

HSR filings are premerger notifications that parties to a proposed merger transaction make with both the Federal Trade Commission and the Department of Justice. Subject to minor exceptions, both the seller and the buyer must each separately file with both agencies.

When was the Hart-Scott-Rodino Act passed?

September 1976
President Gerald Ford Jr. sighed the HSR Act into law in September 1976. The Hart-Scott-Rodino Act requires companies to file a pre-merger notification report with the Federal Trade Commission (FTC) and the Department of Justice (DOJ) before a planned merger or acquisition.

What triggers a Hart-Scott-Rodino filing?

The HSR “size of parties” threshold generally requires that one party to the transaction have annual net sales or total assets of $202 million or more (up from $184 million in 2021), and that the other party have annual net sales or total assets of $20.2 million (up from $18.4 million).

What triggers Hart-Scott-Rodino filing?

Shareholders do not aggregate shares that they already hold with the to-be-acquired shares in determining whether they have crossed one of the thresholds. If stock values rise, for example, the acquisition of just one additional share may trigger an HSR filing.

What is the purpose of antitrust laws quizlet?

The purpose of antitrust law is to reduce competition. Any activity that substantially affects interstate commerce falls outside the scope of antitrust laws. Market power is the ability of a firm to enter a given market. A price-fixing agreement that is reasonable does not violate antitrust law.

What are antitrust laws quizlet?

Antitrust Law. series of law intended to promote abundant, fair competition in the marketplace. -illegal monopolies, pricing schemes, product distribution networks, mergers. -details anticompetitive behaviors that are illegal.

What does HSR stand for antitrust?

The Hart–Scott–Rodino Antitrust Improvements Act of 1976 (Public Law 94-435, known commonly as the HSR Act) is a set of amendments to the antitrust laws of the United States, principally the Clayton Antitrust Act. The HSR Act was signed into law by president Gerald R. Ford on September 30, 1976.

What does antitrust law require companies to do?

Antitrust laws are regulations that encourage competition by limiting the market power of any particular firm. This often involves ensuring that mergers and acquisitions don’t overly concentrate market power or form monopolies, as well as breaking up firms that have become monopolies.