Hart-Scott-Rodino Antitrust Improvement Act
Hart-Scott-Rodino Antitrust Improvement Act (HSR Act) is a United States federal law enacted in 1976. The purpose of this act is to prevent anticompetitive mergers and acquisitions that may harm consumers.
Under the HSR Act, companies involved in certain mergers or acquisitions must notify the Federal Trade Commission (FTC) and the Department of Justice (DOJ) before completing the transaction. This notification allows the agencies to review the proposed transaction and determine if it would violate antitrust laws.
If the FTC or DOJ believes that a proposed transaction may harm competition, they can take action to block the merger or require the companies to make changes to address the antitrust concerns.
It is important for companies to understand the requirements of the HSR Act and comply with its provisions to avoid potential legal consequences.
Some examples of transactions that may trigger the HSR Act notification requirements include mergers, acquisitions of voting securities, and certain asset acquisitions above certain thresholds.
- Mergers: When two companies combine to form a new entity.
- Acquisitions of voting securities: When a company acquires a certain percentage of another company’s voting securities.
- Asset acquisitions: When a company acquires a significant portion of another company’s assets.
For more information on the Hart-Scott-Rodino Antitrust Improvement Act, you can visit Wikipedia.