July 18, 2017
Antitrust: Fewer but Longer M&A Investigations
This Dechert memo surveys the first half of 2017 and says that antitrust M&A investigations are down, but that the trend toward longer investigations continues. Here are some of the key takeaways:
– The number of significant merger investigations was down slightly to 12 during the first half of 2017 compared to 14 the first half of 2016, and 31 on a Rolling Twelve Months (RTM) basis compared to 36 during the prior period.
– The antitrust agencies filed four complaints over the RTM ending in the second quarter of 2017 compared to six during the prior period.
– Despite the reduced number of significant merger investigations, they continued to take longer on average—12.2 months in the first half of 2017 compared to 9.5 months in the first half of 2016, and 11.0 months on a RTM basis compared to 9.3 months during the prior period.
– Because merging parties either waited longer to file HSR or more of them pulled-and-refiled, the time period between deal announcement and the issuance of a second request increased by about one month between 2011 and 2017.
Companies are responding to the increased duration of investigations and lawsuits by allotting more time in merger agreements for antitrust review—about 15 months on average during 2017.
– John Jenkins