For the first time in more than a decade, the U.S. Department of Justice has updated its merger guidelines to address antitrust challenges at the federal level through modern solutions, such as asset selling, Bloomberg reported. Makan Delrahim, head of antitrust at the department’s Justice Department, said in a statement Thursday that the new version of the M.A. Relief Manual reflects its renewed focus on fulfilling its legal obligations and reaffirms the Justice Department’s commitment to effective structural relief.
2020 Mergers Manual.
For the division, this will help it correct the damage that the proposed merger could do to market competition and improve the transparency and predictability of the process.
The updated manual also outlines how the Justice Department will build some form of settlement to ensure strong market competition even after the merger is completed.
For example, Justice Department law enforcement officials may require companies to divest assets that are most likely to have monopoly problems and seek other enforcement actions, such as fines if they fail to comply with antitrust settlement orders.
The new guidelines are understood to have been issued less than a week after the Justice Department said it was considering a comprehensive review of bank mergers. Under Delrahim’s leadership, the department has been re-evaluating its antitrust measures.
What impresses the outside world is the revised version of the Vertical Mergers and Acquisitions Guide, which outlines how executive agencies, including the Federal Trade Commission, will review corporate transactions involving different parts of the supply chain.
Typically, companies agree to some sort of settlement with the Justice Department, such as divesting some of their business assets. T-Mobile had previously agreed to spin off Boost Mobile, its prepaid brand, to Dish Network Corp in order to complete its acquisition of Sprint. 。
If it does not comply, the government will have the power to block the deal and even go to court with the merger and acquisition companies.