US antitrust regulators have recently issued new guidelines for reviewing deals, which could potentially result in significant delays to transactions.
The Federal Trade Commission and the Department of Justice have released proposed rules for the revised Hart-Scott-Rodino filing process. The rules will require companies to submit additional information that the agencies hadn’t previously requested. It is worth noting that this process has remained unchanged for the past 45 years.
According to a Bloomberg report, an expert estimated that the new requirements could potentially extend the typical deal review process by 2-3 months.
“The Agencies acknowledge that the proposed changes require a significant amount of additional information,” the agencies said in a statement.
The agencies will request information regarding transaction rationale and details concerning investment vehicles or corporate relationships. The antitrust regulators will also inquire about products or services, both horizontal and non-horizontal business relationships, such as supply agreements.
The agencies will accept public comments on the proposed rule changes for a period of 60 days.