The National Hockey League (NHL) and a group of fans reached a settlement last week in an antitrust class-action lawsuit that was originally filed in 2012. The lawsuit was filed in New York federal court by a group of television subscribers who claimed that the NHL, many of the league’s teams, and the league’s television partners violated antitrust laws by imposing territorial restrictions on the broadcast of games. The NHL uses television blackouts to limit the availability of local, in-market game broadcasts to fans over the internet.
NHL and Television Subscribers Reach Settlement in Antitrust Case
New Zealand Approves Staples-Office Depot Merger, Challenges Remain at Home
On February 4, 2015, Staples, Inc. announced its global acquisition of Office Depot, Inc. Staples’ Chairman and CEO, Ron Sargent, announced:
“We expect to recognize at least $1 billion of synergies as we aggressively reduce global expenses and optimize our retail footprint. These savings will dramatically accelerate our strategic reinvention which is focused on driving growth in our delivery businesses and in categories beyond office supplies.”
Staples has offered $6.3 billion to forge the deal with an expectation of creating a retail chain worth $39 billion in revenue and with thousands of stores. Staples is financing the deal with a $3 billion ABL credit facility and a $2.75 billion six-year loan from Barclays and Bank of America Merrill Lynch.
Pending Regulatory Approval Charter’s Acquisition of Time Warner Positions the Company for the Future
Charter Communications, a cable and telecommunications company, recently announced that it would acquire Time Warner Cable in a $55 billion deal. Along with Time Warner, Charter also plans to acquire Bright House Networks in an additional $10 billion deal. While Bright House is a much smaller provider, Charter and Time Warner are the second and third largest cable television providers in the United States. Charter CEO Tom Rutledge claims the combined companies will provide customers with improved internet speeds and more competitive pricing.
Shell’s Purchase of BG Will Test the Transparency and Assertiveness of China’s Young Antitrust Regime
Shell announced a $70 billion acquisition of Britain’s BG group. But it is liquefied natural gas (“LNG”)—not oil—that drove the historic deal. The two energy giants will surpass ExxonMobil as the biggest player in this volatile and niche market.
FedEx Looks to Become Major European Player with TNT Express Acquisition
FedEx has agreed to acquire European shipping and delivery competitor TNT Express (TNT). The $4.8 billion deal must still receive approval from European regulators, a status that UPS failed to achieve when its proposed acquisition of TNT was blocked by these same regulators in 2013. UPS was unable to satisfy regulator’s antitrust concerns because of their “dominant” position in the European ground shipping market. Substantial similarities between UPS and TNT’s business offerings led to regulators’ concern that the deal would result in a significant decrease in competition and an increase in prices for consumers.
American Express Loses Antitrust Fight against U.S. Department of Justice
On February 19, 2015, Judge Nicholas Garaufis of the U.S. District Court for the Eastern District of New York ruled that American Express violated U.S. antitrust laws with its practice of preventing merchants from encouraging customers to use some types of credit cards over others.
Recap – M&A Speaker Series: The View from New York
On January 22, expert M&A attorneys from Cleary Gottlieb Steen & Hamilton LLP shared their perspectives on M&A practice and reviewed some of the newest developments in the field. The following is a recap of their discussion, which was co-sponsored by the Berkeley Center for Law, Business, and the Economy (BCLBE) and Weil, Gotshal & Manges LLP.
European Commission Fines Four Major Banks for Cartel Behavior
On October 21, 2014, the European Commission fined JPMorgan, UBS, and Credit Suisse over 94 million euros (about $120 million) for participation in two distinct cartels involving the Swiss franc. In both of these cases, the banks agreed to settle with the Commission.
Creating a Beer Behemoth: AB InBev Interested in Purchasing SABMiller
Over the last fifteen years numerous mergers and acquisitions have consolidated the global beer market into relatively few mega-corporations. What appears to be the next step in this trend is that AB InBev NV, the world’s largest brewing company, is reportedly interested in purchasing SABMiller PLC, the world’s second largest brewing company, for over $120 billion.
The (Billion) Dollar Saga Continues as Dollar General Goes Hostile
For some time now, a most interesting and intriguing saga relating to corporate mergers have been taking place in the “dollar” retail industry, where Dollar General and Dollar Tree are each seeking to acquire holdings in Family Dollar.