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Christopher Zock, Chief Investment Officer of CAZ Investments, analyzes the number of merger and acquisition deals under Biden and Trump.
of The Biden-Harris administration He has taken an aggressive stance in scrutinizing proposed mergers and acquisitions in recent years, leading to several deals being blocked or halted due to regulatory action.
The Federal Trade Commission (FTC) and the Antitrust Division of the Department of Justice (DOJ) are the main regulatory bodies. Evaluate the combinations and challenge it in court if there are concerns about the impact of competition.
Those two agencies have opposed several high-profile mergers in recent years, many of which have been blocked by courts or abandoned by the companies involved in 2024.
In an interview with the Council on Foreign Relations in November, FTC Chairwoman Lena Khan said the increased merger investigation was “part of the conversation on day one of the incredible antitrust threat” and that “as a law enforcement officer, I want people to do it.” Consider whether their agreement violates the law or does not violate the law, and that is progress.”
FTC: SEE HOW MANY MERGERS AND ACQUISITIONS HAVE BEEN BLOCKED BY THE BIDEN ADMIN
Federal Trade Commission Chairwoman Leena Khan has led the administration’s efforts to block mergers on the grounds of competition. (Drew Anger/Getty Images/Getty Images)
In the year See some of the mergers blocked, abandoned or opposed by federal antitrust regulators in 2024.
Albertsons and Kroger
The FTC and state legal officials won a lawsuit this month over the proposed $25 billion merger between Albertsons and Kroger, the largest merger in history. The grocery industry.
The two companies expressed disappointment that the courts rejected their proposed merger following the decision. Albertsons and Kroger had planned to move more than 500 stores to C&S Wholesale Grocers to address concerns about the impact of competition on the grocery industry.
Albertsons terminated the merger agreement following the decisions. It also alleges that Kroger breached the merger agreement by failing to transfer certain assets, failing to comply with regulatory approvals, rejecting strong leveraged buyouts and failing to cooperate with Albertsons. A Kroger spokeswoman pushed back on those claims, telling The Wall Street Journal that Albertsons was responsible for the merger’s failure and that it itself violated the merger agreement.
Kroger and Albertsons have abandoned their merger following a court ruling. (Kroger: Charles Bertram/Lexington Herald-Leader/Tribune News Service via Getty Images | Albertsons: Shelby Tauber/Bloomberg via Getty Images/Getty Images)
A federal judge blocks Kroger’s $25 billion acquisition of Albertsons
Capri and Tapestry
Luxury fashion companies Capri and Tapestry ended their merger in November 2024 after a judge ruled in late October that their tie-up would weaken competition in the luxury handbag and accessories space.
The ruling rejected the companies’ argument that handbags are non-value-added goods. Consumer preferences“It ignores that for many women, handbags are not only a way of expressing themselves through fashion, but also an essential aid in their daily lives,” the judge wrote.
Had the merger gone ahead, it would have united the Tapestry Coach, Kate Spade and Stuart Whiteman brands with Capri’s Versace, Jimmy Choo and Michael Kors.
Versace was one of the luxury brands that would have merged had the Capri and Tapestry merger gone ahead. (Photo by Scott Olsen/Getty Images/Getty Images)
JetBlue, Spirit agreed to terminate the merger on well-being issues
JetBlue and Spirit
JetBlue and Spirit called off their merger in March 2024 after it decided the two airlines were unlikely to get legal and regulatory approvals to complete the deal by July 2024.
The two companies envisioned the merger as a way to create a national low-cost competitor to the so-called Big Four airlines – American, United, Delta and Southwest.
In January, a federal judge blocked a proposed merger between JetBlue and Spirit after agreeing with the Justice Department that the deal would hurt low-cost airline tickets.
FTC sues $4B to block merger of mattress companies
JetBlue and Spirit abandoned their planned merger during regulatory scrutiny. (Photo by Joe Radle/Getty Images/Getty Images)
Tempur Sealy and Mattress Firm
Tempur Silly and Mattress Firm have proposed a $4 billion deal that would see the mattress supplier acquire the retailer in May 2023, though the deal is currently in place. Legal risk.
The FTC voted bipartisan 5-0 in July to block the merger that would link the world’s largest mattress supplier and the world’s largest mattress retailer, citing the effects of competition on the industry as well as prices on consumers.
Tempur Sealy and Mattress Firm argued that the mattress industry is “highly competitive” because consumers can choose from “a wide selection of products, brands, price points and purchase channels.”
Closing arguments in the federal court case were held in mid-December, although a decision has not yet been announced.
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UnitedHealth Group and Amedisys
The DOJ filed a lawsuit in November to block UnitedHealth Group’s $3.3 billion acquisition of hospice services company Amedisys.
The agency said the deal would eliminate competition in the home health and hospice industry, hurting patients, insurers and nurses in the process. When Attorney General Merrick Garland announced the charges, the agency sought to ensure “unlawful consolidation and monopolization” in the health care industry.
On a website supporting the deal, Optum, a subsidiary of UnitedHealth Group, argues that there is intense competition in the home health and hospice care industries and that the merger will enhance competition, instead.
