FTC revamps merger review

Reforms to FTC's evaluation process for "second requests" in merger and acquisition transactions are intended to expedite such inquiries and to lower costs for the commission and companies involved. The reforms are in effect for all filings submitted on or after Feb. 17. Second requests are made when the agency seeks additional information about proposed transactions and occur in about 5% of merger evaluations, the commission says; more than half of such requests resulted in antitrust enforcement action in 2005. 1"Reforms to the Merger Review Process" include limiting the number of employees required to provide information and narrowing the time periods for which companies must provide documentation. While a typical M&A request takes 30 days to clear, second requests currently take up to six to nine months, costing the agency millions of dollars, FTC says...