4.4. Hart-Scott-Rodino Antitrust (HSR) Act

The Hart-Scott-Rodino Antitrust Improvements Act was adopted in 1976 to allow the federal government an opportunity to review the potential effects of a merger or acquisition on competition. When a merger occurs, the sell-side and buy-side advisory firms must assess the likelihood of any antitrust issues. If the transaction is large enough, it will be subject to evaluation by the Federal Trade Commission (FTC) and the Department of Justice (DOJ). If the parties need to file under the Act, the merger will be considerably slowed because it will be subject to a 30-day waiting period (15 days for tender offers) while the Department of Justice and Federal Trade Commission make an evaluation. The parties can request an early termination date, but this is