On 25 October, the FTC released a Statement on the Use of Prior Approval Provisions in Merger Orders (Prior Approval Statement) making clear that the agency intends to include in all divestiture orders a requirement that the merging parties obtain prior approval from the FTC before closing any future transaction affecting any relevant market for which a violation was alleged. This statement follows the FTC’s July recission of the 1995 Policy Statement that ended the FTC’s practice of requiring such prior approvals. Key takeaways The Federal Trade Commission (FTC) says that it will now require merging parties to agree to prior approval provisions in all divestiture orders. For ten years, prior approval will be required before any acquisition can be concluded in a relevant market for
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The US FTC establishes broad policy to require prior approval provisions in all merger divestiture orders
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