Source: https://www.jdsupra.com/legalnews/annual-hsr-threshold-adjustments-87614/
Timestamp: 2019-06-19 05:57:43
Document Index: 417694167

Matched Legal Cases: ['§7', '§7', '§7', '§7', '§18', 'arts 801']

Jason Cruise, Alan Devlin, Michael Egge, Patrick English, Joshua Holian, Hanno Kaiser, Farrell Malone, Amanda Reeves, Karen Silverman, Peter Todaro, E. Marcellus Williamson
On February 15, 2019, the Federal Trade Commission (FTC) announced new jurisdictional thresholds for the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act). The FTC is required to adjust the thresholds annually, based on the change in gross national product. These increases will take effect in mid-March (30 days after the date of publication in the Federal Register), and will affect all transactions closing on or after the effective date.
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Latham & Watkins Antitrust & Competition Practice February 19, 2019 | Number 2460 Annual HSR Threshold Adjustments Announced FTC adjusts the Hart-Scott-Rodino Act thresholds, raising the minimum size for reportable acquisitions to US$90 million. On February 15, 2019, the Federal Trade Commission (FTC) announced new jurisdictional thresholds for the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act). The FTC is required to adjust the thresholds annually, based on the change in gross national product. These increases will take effect in mid-March (30 days after the date of publication in the Federal Register), and will affect all transactions closing on or after the effective date. The new thresholds will: 1. Increase the minimum size-of-transaction test to US$90 million; this means acquisitions valued at US$90 million or less will not be reportable 2. Increase the transaction size to which the size-of-person test applies to US$359.9 million; this means acquisitions of more than US$359.9 million will be reportable regardless of the size of the parties unless an exemption applies 3. Increase the size-of-person test to US$18 million and US$180 million; this means that acquisitions of $359.9 million or less are not reportable unless one person has assets or annual net sales of US$18 million or more and the other person has assets or annual net sales of US$180 million or more. The size-of-person test for an acquired person not engaged in manufacturing is sales of $180 million or assets of US$18 million. The new thresholds for 2019 are set out below. The chart on the next page illustrates the application of the HSR thresholds and lists the filing fee amounts, which remain unchanged. Original Threshold New Threshold Size of Transaction US$50 million US$90 million Size of Person US$10 million and US$100 million US$18 million and $180 million Transaction Size Above Which Size-of-Person Test Is Inapplicable US$200 million US$359.9 million Notification Thresholds: US$50 million US$100 million US$500 million 25% of stock worth US$1 billion US$90 million US$180 million US$899.8 million US$1,799.5 million Filing fee thresholds: $50 million $100 million $500 million US$90 million US$180 million US$899.8 million HSR Reportability Thresholds §7A(a)(2) 2019 Thresholds Size-of-Transaction Test Value of equity or assets held as a result of the acquisition (must aggregate with current holdings) Small Medium Large ≤ $90 m > $90 m ≤ $359.9 m > $359.9 m One person’s assets/ sales are ≥ Size-of-Person Test Annual net sales and total assets No No $180 m $18 m One person’s assets/ sales are ≥ No ﬁling required if (i) acquired person is not engaged in manufacturing; and (ii) has assets of less than $18 m; and (iii) has net sales of less than $180 m, §7A(a)(2)(B)(ii)(II, III) Yes No ﬁling required Filing required, unless an exemption applies Size of Transaction Filing Fee (acquiring person only) < $180 m $45,000 < $899.8 m $125,000 ≥ $899.8 m $280,000 Some common exemptions: - Ordinary course of business acquisitions, 802.1, §7A(c)(1) - Certain acquisitions of real property, 802.2, 802.5 - Acquisitions solely for investment purposes, 802.9, 802.64 - Intraperson transfers, restructuring, 802.30 - Foreign assets, if US sales below threshold, 802.50 - Voting securities of foreign issuer without US nexus, 802.51 - Acquisitions subject to US agency approval, 802.6 - Acquisitions by or from a foreign government 802.52 Sources: HSR Act (§7A Clayton Act,15 USC §18a), Coverage Rules and Exemption Rules (16 CFR Parts 801 and 802) If you have any questions about this Client Alert, please contact one of the authors listed below or the Latham lawyer with whom you normally consult: Jason D. Cruise jason.cruise@lw.com +1.202.637.1033 Washington, D.C. Amanda P. Reeves amanda.reeves@lw.com +1.202.637.2183 Washington, D.C. Peter M. Todaro peter.todaro@lw.com +1.202.637.2380 Washington, D.C. Michael G. Egge michael.egge@lw.com +1.202.637.2285 Washington, D.C. Karen E. Silverman karen.silverman@lw.com +1.415.395.8232 San Francisco Joshua N. Holian joshua.holian@lw.com +32.2.788.6080 Brussels E. Marcellus Williamson marc.williamson@lw.com +1.202.637.2200 Washington, D.C. Hanno F. Kaiser joshua.holian@lw.com +1.415.395.8856 San Francisco Alan J. Devlin marc.williamson@lw.com +1.202.637.1071 Washington, D.C. Farrell J. Malone farrell.malone@lw.com +1.202.637.1024 Washington, D.C. Patrick C. English patrick.english@lw.com +1.202.637.1030 Washington, D.C. 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