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Date

Tags:

Rule
801.30, 801.2
Staff
Kristin Shaffer
Response/Comments

We view this as an acquisition of B by A with backside acquisitions of A by the B shareholders. Since the agreement is signed by both A and B, it should not be treated as an 801.30 transaction.

Question

From: Shaffer, Kristin


Sent: Friday, June 29, 2018 11:45:36 AM (UTC-05:00) Eastern Time (US & Canada)


To: [Redacted]


Cc: [Redacted]


Subject: RE: Question regarding acquiring and acquired persons

[Redacted]

We view this as an acquisition of B by A with backside acquisitions of A by the B shareholders. Since the agreement is signed by both A and B, it should not be treated as an 801.30 transaction.

Best regards,

Kristin

 

Kristin Shaffer

Attorney

Premerger Notification Office

Federal Trade Commission

202-326-3434 | kshaffer@ftc.gov

-------------------------------------------

From: [Redacted]


Sent: Thursday, June 28, 2018 1:04 PM


To: [Redacted]


Subject: Question regarding acquiring and acquired persons

Assume that a reportable transaction is to take place in the following sequence:

            Step 1: In a stock-for-stock transaction, Company B will merge with a wholly-owned subsidiary of Company A, with Company B surviving as a wholly-owned subsidiary of Company A. Former shareholders of Company B will become shareholders of Company A.

Step 2: Immediately following step 1, Company B merges with Company A, with Company A surviving.

Can you confirm that the HSR filing should be made with Company A as the acquiring person only and Company B as the acquired person only, with respect to Step 1 (and Step 2 is exempt under 802.30)?

Also, if both Company A and Company B are publicly-traded companies, but each is party to the merger agreement, would this be considered an 801.30 transaction?

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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