ESG and sustainability
Law for a sustainable future
The Federal Trade Commission (FTC) today announced increased reporting thresholds under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the HSR Act).
These reporting thresholds are revised annually based on changes in the US gross national product. The increases will apply to all transactions that close after the effective date, which is February 23, 2022 (30 days after publication of the changes in the Federal Register).
Most importantly, the minimum "size-of-transaction" threshold will be increased from US$92 million to US$101 million. Acquisitions below this threshold will not be reportable.
|Threshold||2022 Adjusted Threshold|
|Minimum Size-of-Transaction||US$101 million|
|Size-of-Persons Test||US$20.2 million and US$202 million|
|Size-of-Transaction above which Size-of-Persons Test Does Not Apply||US$403.9 million|
The adjustments also apply to certain other HSR Act thresholds and exemptions, such as the exemptions for acquisitions of foreign assets and voting securities.
While the HSR filing fee amounts have not changed in more than a decade, the size-of-transaction thresholds, upon which the filing fee is based, will be increased. The filing fee for each of the new thresholds will be:
|2022 Size-of-Transaction Threshold||Filing Fee|
|Value of transaction greater than US$101 million, but less than US$202 million||US$45,000|
|Value of transaction US$202 million or greater, but less than US$1,009.8 million||US$125,000|
|Value of transaction US$1,009.8 million or greater||US$280,000|
|25 percent of an issuer's voting securities if valued in excess of US$2,019.6 million||US$280,000|
|50 percent of an issuer's voting securities if valued at greater than US$101 million||US$45,000|
Even if a transaction is reportable based on the above thresholds, it may qualify for an HSR Act exemption. Complex rules apply to the valuation and exemptions under the HSR Act, and you should consult a lawyer experienced in HSR matters to determine whether a transaction is reportable.
The new thresholds will remain in effect until the next annual adjustment, expected in January or February 2023.
On March 9, 2023, the European Commission (EC) adopted changes to its State aid framework to support its “Green Deal Industrial Plan for the Net-Zero Age” (the Net Zero Plan) presented in February 2023. The Net Zero Plan is part of the European Green Deal, which aims to make Europe the world’s first climate-neutral continent by 2050.
© Norton Rose Fulbright LLP 2023