Mergers and Acquisitions

Justice Department Files Antitrust Lawsuit to Block GE-Electrolux Merger

By Kevin Jones, J.D. Candidate 2018 | Posted on

On July 1, 2015, the Department of Justice filed suit under federal antitrust statutes in the U.S. District Court for District of Columbia against AB Electrolux for its attempt to acquire General Electric for $3.3 billion, halting the potential buyout. The Department of Justice alleges that the multinational corporation’s buyout of GE would combine the two largest appliance manufacturers of ranges, cooktops, and wall ovens, effectively diminishing vital market competition.

Deputy Assistant Attorney General Leslie C. Overton of the Antitrust Division announced that the lawsuit “seeks to prevent a duopoly in the sale of major cooking appliances,” since allowing the merger would leave Electrolux and competitor Whirpool with control over 75% of U.S. sales. The DOJ contends the lack of competition would leave millions of American citizens and families vulnerable to major price increases in two major ways: directly for homeowners and indirectly for property lessees who will pay higher rents as a result of commercial builders passing off the costs of higher unit costs.

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New Zealand Approves Staples-Office Depot Merger, Challenges Remain at Home

By Philip Wiseman, J.D. Candidate 2017 | Posted on

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.

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Pending Regulatory Approval Charter’s Acquisition of Time Warner Positions the Company for the Future

By Dylan Peterson, J.D. Candidate 2017 | Posted on

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.

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FedEx Looks to Become Major European Player with TNT Express Acquisition

By Dylan Peterson, J.D. Candidate 2017 | Posted on

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.

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A New Leader in Combatting C.N.S. Disorders

By Alejandro Almodovar, J.D. Candidate 2017 | Posted on

On Monday, March 30, Teva Pharmaceutical Industries Ltd. announced that it would be acquiring Auspex Pharmaceuticals for $3.2 billion. As a result of the acquisition, shares of Auspex climbed from $29.60 (41.7 percent) to $100.51 while Teva shares increased by $1.67 (2.7 percent) to $63.65. This major increase in the value of the shares for both companies will boost their presence in treatments for central nervous system disorders, which may save many lives.

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Potential CIT and OneWest Bank Merger Faces Public Hearing

By Andrew Le, JD Candidate 2017 | Posted on

A proposed merger between OneWest Bank and CIT Group is facing increased scrutiny from federal banking regulators amidst concerns that the merged bank could hinder community-lending practices under the Community Reinvestment Act (CRA).

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A Giant Merger in the Generic Drug Industry

By Omer Selamoglu, LL.M. Candidate 2015 | Posted on

In accordance with its 8-K filing of Auspex Pharmaceuticals, Inc. (“Auspex”) with the U.S. Securities and Exchange Commission on March 30, 2015, Teva Pharmaceuticals Industries Ltd. (“Teva”), entered into a merger agreement with Auspex at a purchase price of $101 per share. The total amount of purchase will be about $3.2 billion.

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