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Date
Rule
801.2
Staff
Nora Whitehead
Response/Comments

You may use the name of the to-be-formed entity in the form, and just explain as you describe below.

Question

From: Whitehead, Nora <nwhitehead@ftc.gov>
Sent: Wednesday, May 17, 2023 4:58:55 PM (UTC-05:00) Eastern Time (US & Canada)
To: [Redacted]
Cc: HSRHelp <HSRHelp@ftc.gov>
Subject: RE: Acquired Entity--HSR Form question

You may use the name of the to-be-formed entity in the form, and just explain as you describe below.

From: [Redacted]
Sent: Wednesday, May 17, 2023 4:39:42 PM (UTC-05:00) Eastern Time (US & Canada)
To: HSRHelp <HSRHelp@ftc.gov>
Subject: Acquired Entity--HSR Form question

I have a situation where we will likely file on a letter of intent. The transaction is clear that the buyer will purchase the seller's entity. The seller's entity would be the acquired entity. However, the acquired entity will undergo a conversion from a corporation to a newly created LLC, which would not be HSR reportable. It is simply being done for tax reasons. I am putting all of this in the transaction description.

My question is about the Form, should I put in the current corporation as the acquired entity or should I list the to be formed entity as the acquired entity on the form. For example, is it acceptable to put in "To be formed LLC" as the acquired entity or go ahead and put the name of the to be formed LLC in the form.

Let me know.

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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