Antitrust M&A Snapshot | Q3 2022

In the USA, the US Division of Justice (DOJ) and the Federal Commerce Fee (FTC) misplaced 4 merger challenges (Illumina/GRAIL, UnitedHealth/Change Healthcare, U.S. Sugar/Imperial Sugar and Booz Allen/EverWatch) in September. The losses show that events keen to litigate can have success in court docket. The absence of “smoking gun” paperwork and lack of a presumption of anticompetitive results (based mostly on market shares and focus) made these circumstances very troublesome for the federal government. The judges in these circumstances tended to credit score structural and behavioral treatments that the federal government felt had been inadequate and had been persuaded by real-world testimony from executives and third events contradicting the federal government’s theories of modified financial incentives from the transactions.

In July 2022, the European Parliament printed the ultimate textual content of the European Union’s upcoming instrument to deal with distortive international subsidies, following a provisional political settlement reached between the EU lawmakers in June (Overseas Subsidies Regulation). The Overseas Subsidies Regulation introduces a brand new obligatory screening mechanism together with notification obligations and the European Fee’s proper of ex officio investigations, which may have a substantial affect on M&A transactions and procurement procedures.

The Overseas Subsidies Regulation will enter into drive as soon as it’s formally adopted by EU lawmakers and printed within the Official Journal. It should turn into instantly relevant throughout the European Union six months after entry into drive. The notification obligations will begin to apply 9 months after entry into drive. The Fee is also at present drafting procedural guidelines on find out how to notify transactions, find out how to calculate closing dates, and the method for preliminary evaluations and in-depth probes when there’s a suspicion of distortive international subsidies.

Access the full issue.