Untied tie-ups

8 August 2013 By Reynolds Holding Follow @holdingren

U.S. mergers too small to trigger pre-closing antitrust review are being hammered after completion. The tactic shows the president means business, but it adds unnecessary risk to tie-ups like Solera’s purchase of Actual Systems. Firms need earlier warning of regulatory concerns.

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Subjects

Regions

United States of America

Context News

The U.S. Federal Trade Commission on July 22 ordered Solera Holdings, a software provider to the automotive recycling industry, to divest certain assets after challenging as anticompetitive the company’s $8.7 million purchase in 2012 of rival Actual Systems and affiliates. The merger was at least the 20th consummated transaction that the FTC or the Department of Justice has challenged during the Obama administration, which is in its fifth year. Only 15 such transactions were challenged during the eight years of the Bush administration.
Federal law generally requires transactions of more than $70.9 million to be reported to the FTC and Justice Department before closing. Certain acquisitions by banks, insurance companies and real estate firms may be exempt from reporting as transactions in the ordinary course of business.

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