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Stalemate at FTC Leads to Contested Merger Closing


Stalemate at FTC Leads to Contested Merger Closing
Thursday, May 20, 2021
On May 14, 2021, despite not having obtained official approval from federal antitrust authorities, 7-Eleven Inc., the largest convenience-store chain in the U.S., took the highly unusual step of closing its $21 billion purchase of the Speedway retail gasoline and convenience-store chain from Marathon Petroleum. 
The parties announced the transaction in August 2020.  After notifying the federal antitrust agencies of the deal pursuant to the Hart-Scott-Rodino Antitrust Improvements Act (HSR Act), the parties received a request for additional information (known as a Second Request) from the Federal Trade Commission (FTC), as the agency’s initial review of the transaction raised potential competitive issues due to the companies owning competing convenience stores in numerous local geographic markets.  Last week’s disputed closing followed an approximately nine month FTC investigation ....

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FTC Announces Unprecedented Indefinite Moratorium on Early Terminations of HSR Act Waiting Periods | Skadden, Arps, Slate, Meagher & Flom LLP


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On Thursday, February 4, 2021, the Federal Trade Commission (FTC), with the concurrence of the Department of Justice’s Antitrust Division (DOJ), announced that it had suspended the process by which requests for early termination of Hart-Scott-Rodino Act (HSR Act) waiting periods are granted, potentially signaling a more aggressive approach to merger review.
Key Takeaways
For the foreseeable future, filing parties must in all cases wait for the full 30-day waiting period to expire before closing.
The rule applies to currently filed transactions and to any new filings.
The shift in practice by the FTC and the DOJ may preview a significant departure from the approach to merger enforcement under both Democratic and Republican administrations for decades. ....

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