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Date
Rule
802.2
Staff
Michael Verne
Response/Comments
If it still requires considerable work before it can begin operations, it can be exempted as unproductive real property. See 61 FR @ 13674 (March 28, 1996). The SBP for new facilities stated the following: "However, if the facility requires a substantial amount of additional construction or outfitting, it may not be classified as a new facility but may qualify as unproductive real property as defined in new Sec. 802.2(c).

Question

From: (redacted)

Sent: Wednesday,March 22, 2006 8:32 PM

To: Verne,B. Michael

Subject: Plantunder Construction

Mike,

If a plant that is underconstruction by one corporation is being acquired by another corporation for anamount in excess of $56.7 million, is a HSR required?

The plant was beingconstructed for use by the seller. I believe it is excluded from the exemptionin 802.2(c) by (i).

However, the plant does notgenerate revenues. It seems like an unnecessary filing.

About Informal Interpretations

Informal interpretations provide guidance from previous staff interpretations on the applicability of the HSR rules to specific fact situations. You should not rely on them as a substitute for reading the Act and the Rules themselves. These materials do not, and are not intended to, constitute legal advice.

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