FTC Finalizes 'Generational Upgrade' to HSR Merger Rules Effective January

Oct 11, 2024, 03:08 PM

On October 10, the Federal Trade Commission (FTC) finalized changes to the Hart-Scott-Rodino (HSR) premerger notification rules, marking a significant overhaul of the merger filing process. The new rules, approved unanimously by a 5-0 vote, aim to modernize and streamline the information companies must submit when proposing mergers or acquisitions. FTC Chair Lina Khan described the updates as a "generational upgrade" that will enable enforcers to more effectively and efficiently prevent illegal deals. The finalized rules pare back some of the initial proposals following criticism from industry groups, notably dropping requirements to submit preliminary deal drafts and detailed labor market information. The FTC has also reinstated the "early termination" of reviews for benign tie-ups. The changes are expected to increase the burden on merging organizations but less so than the previously proposed rules. The new HSR rules are set to take effect in January.