Mergers and acquisitions within the healthcare industry have become increasingly common since the implementation of the Patient Protection and Affordable Care Act (PPACA) in March 2013. Parties to the individual merger transactions often cite the need to comply with and survive under the PPACA as a justification for the unification between otherwise-competitors in the healthcare services market. In the view of the Federal Trade Commission (FTC), however, the consolidation of competing healthcare service providers raises anticompetitive concerns that must be monitored and regulated to ensure compliance with Federal antitrust laws.
Antitrust Concerns Stem From Merger Frenzy in Healthcare Industry
Family Dollar Rejects Takeover Bid by Dollar General
On August 21, 2014, Family Dollar Stores, Inc. announced that its Board of Directors unanimously rejected Dollar General Corporation’s takeover bid, citing antitrust issues. This news comes in light of the fact that Dollar General outbid rival Dollar Tree, raising the possibility that Family Dollar would abandon its existing deal with Dollar Tree. However, Family Dollar rejected Dollar General’s proposed $9.7 billion acquisition offer and reaffirmed its support for the $8.5 billion deal with Dollar Tree, which it already agreed to. (more…)
Court Further Defines Limitations of Applying Revlon Duties in Stock-for-Stock Mergers
This article discusses the recent New York decision in Badowski v. Corrao that further defined the limitations of applying Revlonduties in stock-for-stock mergers.
Update: Sprint and T-Mobile Call It Quits
After months of merger talks and a $32 billion deal rumored to be announced late this summer, Sprint has officially disclosed that it is no longer pursuing a purchase of T-Mobile. Now that a merger is off the table, T-Mobile’s CEO, John Legere, has swung a few punches at its rival. In a recent tweet, Legere wrote: “Join T-Mobile now and jump off the Sprint bus before it crashes.” According to The New York Times, “the tweets reflect not only the reignited competition between the country’s third- and fourth-biggest wireless service providers, but also a peculiar reversal of fortune for each company.” T-Mobile’s new pricing plans have attracted customers, while Sprint—a company that has historically been bigger than T-Mobile—has steadily lost customers.
AbbVie and Shire Merger Expected
In a recent announcement, AbbVie, a research based biopharmaceutical company, revealed plans to acquire Shire, a biopharmaceutical company for $53 billion. If successful, this merger would provide a significant tax advantage for Chicago-based AbbVie as it would “reincorporate in Britain and reduce its tax bill.”
Update: Comcast and Time Warner Cable Merger
Two months ago, we reported on the Comcast and Time Warner Cable merger. At the time, Comcast had expressed confidence in the approval of the merger. However, recent events have commentators speculating whether approval will be as easy as Comcast believed. The infamous Comcast customer service call that has been making the rounds online has come at a very inconvenient time for Comcast, who is in the middle of the merger approval process.
Rise in Global Mergers
Consumers v. Big Business Part III: Sprint and T-Mobile
Sprint and T-Mobile, the nation’s third- and fourth-largest wireless phone operators, are now fully engaged in merger talks. Following the AT&T/DirecTV and Comcast/TWC merger, this is set-up to be the third largest telecommunications deal in the past three years, and perhaps the last big deal of its kind for the near future. The planned merger would be the 18th largest deal in the telecommunications industry since 1984. (more…)
Apple Takes a Big Bite and Buys Beats for $3 Billion
Apple, Inc. announced on Wednesday that it would purchase Beats Electronics (“Beats”) for $3 billion, $2.6 billion of which will be cash and $400 million in stock. Beats founders, Jimmy Iovine and Dr. Dre will join Apple and help transform the company’s current offering of products and music services.
The Latest Law Firm Merger: Squire Patton Boggs
Yesterday, Patton Boggs LLP and Squire Sanders announced that the two firms would merge to form Squire Patton Boggs, a firm that will employ 1,600 attorneys in “45 offices in 21 countries around the world.” This merger will place Squire Patton Boggs as one of the 25 largest firms in the world.