RECENT NEWS
Wall Street Journal  Feb 14  Comment 
Cigna called off the roughly $48 billion merger with Anthem and filed a lawsuit against its suitor, the second such health-insurer deal to fall apart.
New York Times  Feb 14  Comment 
A new Federal Trade Commission study overstates the case for forced sales in mergers, the author contends.
Yahoo  Feb 14  Comment 
Syngenta has got another request for information from U.S. anti-trust regulators reviewing a proposed $43 billion takeover by ChemChina but still sees the deal being completed in the second ...
newratings.com  Feb 13  Comment 
WASHINGTON (dpa-AFX) - Thermo Fisher Scientific Inc. (TMO) said that its pending acquisition of Finesse Solutions, Inc., a leader in the development of scalable control automation systems and software for bioproduction, has received early...
newratings.com  Feb 13  Comment 
United Internet AG: Strato takeover approved by German anti-trust authorities DGAP-News: United Internet AG / Key word(s): Mergers & Acquisitions/Investment United Internet AG: Strato takeover approved by German anti-trust authorities 13.02.2017...
Wall Street Journal  Feb 9  Comment 
The decision said the proposed $48 billion deal violated antitrust law because it would create an unacceptable reduction in the number of companies serving large national employers that insure their workers.
Forbes  Feb 8  Comment 
Under Trump, the political will to challenge platform privilege -- the ability of tech platforms to prioritize their own products and services -- may be shifting. Google has born the brunt of antitrust enforcers’ ire to date, but is Amazon next?
Yahoo  Feb 6  Comment 
BT (BT.L) has become the first major telecoms company to back Google (GOOGL.O) in a battle with EU regulators, defending the "stability and compatibility" of the Android operating system, which is in the sights of anti-trust regulators. The EU...
Financial Times  Feb 5  Comment 
Agrichemicals pair will offer to sell R&D capability to ease fears over $140bn merger




 
TOP CONTRIBUTORS


US antitrust legislation or "competition law" focuses on three kinds of activity discouraging to competition: monopoly, mergers and acquisitions (M&A), and price fixing.

Monopolies and M&A are both regulated to keep companies from becoming too large or powerful within a single or a few industry sectors. M&A activity is particularly worth noting: many industries have been undergoing a phase of general consolidation in the past few years, and U.S. M&A activity has risen more than 31% since 2005 (2006 saw more than US$ 1.5 trillion's worth of activity). Price fixing is also carefully watched to prevent some companies from gaining an "unfair" advantage; antritrust lawsuits in this category tend to target cartels (groups of nominally independent companies that try to artificially establish relatively high prices by agreement across a number of market players).

U.S. Democrats are traditionally harder on antitrust than their Republican counterparts, and the 2008 presidential election will play an important part in determining the strength of the next round of antitrust legislation. In naming his new attorney general and head of the Federal Trade Commission, the new president will heavily influence the political leanings of the two departments with the most control over the outcome of antitrust lawsuits: the Department of Justice and the Federal Trade Commission.

Antitrust Losers

  • TXU and other large utility companies are at risk of antitrust lawsuits for various price-fixing or merger/acquisitions practices. The utilities sector is a particularly common antiturst target because of the high fixed costs/barrier to entry.
    • Telephony/communications, oil, chemicals manufacturing, banking, and cable industries are also strongly at risk for antitrust lawsuits.
  • Microsoft, Apple, and recently even Google are examples of companies that are dominant enough in an industry that any further merger/acquisitions activity is immediately under antitrust activity.

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Antitrust Winners

Legal and economic advisory firms like FTI Consulting, LECG, CRA International, Navigant Consulting, and Huron Consulting Group stand to benefit in all antitrust cases, as they assist parties on both sides by providing trial support services and expert testimony.

To Be Determined

  • XM and Sirius entered into a merger agreement in March 2007 which would leave only one company in the U.S. satellite radio business. Given that neither company has ever generated positive income, a combined company would likely eliminate overlapping costs and optimize operating efficiency. The companies argue against anti-trust worries, claiming their merged company would face heavy competition from traditional radio companies such as Clear Channel Communications (CCU) and CBS (CBS) as well as other audio options for consumers, such as iPods. It wasn't until July 29, 2008, that the two parent companies were able to have completed the long awaited merger. This meant that Sirius Satellite Radio had completed its acquisition of XM Satellite Radio and combining the two radio services to create a single satellite radio network in the United States.This merger brought the combined companies an approximate total of more than 18.5 million subscribers based on current subscriber numbers on the date of merging.
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