The US antitrust agencies have repaired the merger rules and requires companies to disclose subsidy information related to China. This reform may lead to extended transaction time for several months.
According to Bloomberg, the proposed adjustment disclosed on Tuesday (June 27) will be released in the federal bulletin later this week.The new regulations are required to provide information about acquisitions in the past 10 years, information about the company's executives, directors and board observer, and company employee data.
The new application rules also require disclosure of subsidies and loans provided by some foreign governments such as North Korea, China, Russia, and Iran.Congress passed a law in December, asking these institutions to start collecting information about foreign government subsidies because they are worried that China and other countries may provide financial support to some companies and distort competition.
In order to combat illegal mergers, the US Department of Justice and the Federal Trade Commission (FTC) carried out the so-called Hart-SCOTT-Rodino declaration procedure reform. It is estimated that this reform may extend the transaction time as much as two twoBy three months.
The above agency stated that this is the first reform of 45 years. Through reform, they will be able to "more effective and more efficiently screen" transactions with antitrust issues.
These institutions will publicly solicit opinions on the proposed adjustments, and the solicitation period is 60 days.After the FTC and the Ministry of Justice released the final version, the new rules will take effect. It is expected that the final version will take several months to complete.
FTC estimate that the new regulations listed in this 126 -page document increase the company's declaration preparation time by more than 100 hours, and it will take about 37 hours now.
However, Jennifer Rie, a senior analyst at Bloomberg Industry Research, said that if you want to gather all the information and analysis required by these institutions, the company will grow much.She said that the proposed adjustment may extend the relevant procedures for several months and make the US consolidated declaration system closer to Europe.
"We are considering changing the 10 -day process to two to three months," RIE said.Before joining the Bloomberg industry, RIE has worked in the field of antitrust law for 10 years.
