Christopher Zook, CAZ's chief investment officer, breaks down the number of mergers and acquisitions that took place during the Biden vs. Trump era.
this Biden Harris administration In recent years, it has taken an aggressive stance in scrutinizing proposed mergers and acquisitions, resulting in 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 primary regulatory agencies responsible. Review of mergers And challenge them in court if there are concerns about competitive impact.
The two agencies have challenged several high-profile mergers in recent years, several of which were blocked by the courts or abandoned by the companies involved in 2024.
FTC Chairman Lina Khan said in a November interview with the Council on Foreign Relations that increased scrutiny of mergers meant that “potential antitrust risk is part of the conversation on day one,” adding, “As a law enforcement officer, I “I want people to think about whether their transaction is breaking the law or not, and that's progress.”
FTC: See how many mergers and acquisitions were blocked during the BIDEN administration
Federal Trade Commission Chairman Leena Khan has led the administration's efforts to challenge mergers on competitive grounds. (Drew Anger/Getty Images/Getty Images)
Here's a look at some of the mergers blocked, abandoned or stalled in 2024 amid federal antitrust investigations.
Albertsons and Kruger
The FTC and state law enforcement officials this month won lawsuits against the proposed $25 billion merger between Albertsons and Kroger, the largest ever in history. Grocery industry.
The two companies expressed disappointment that the courts rejected their proposed merger after the ruling. Albertsons and Kroger planned to divest more than 500 stores to C&S Wholesale Grocers to address concerns about the competitive impact on the grocery industry.
Albertsons terminated the merger agreement following the rulings. It also filed a complaint alleging Kroger breached the merger agreement by failing to divest certain assets, failing to address regulatory feedback, rejecting stronger divestiture buyers and failing to cooperate with Albertsons. A Kroger spokeswoman pushed back on the claims, telling The Wall Street Journal that Albertsons denies blame for the merger failure and that it has breached the merger agreement itself.
Kroger and Albertsons abandoned their merger after the court rulings. (Kroger: Charles Bertram/Lexington Herald-Leader/Tribune News Service via Getty Images | Albertsons: Shelby Tauber/Bloomberg via Getty Images/Getty Images)
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 would weaken competition in the luxury handbag and accessories space.
The ruling rejected the companies' argument that handbags are price-sensitive non-essential goods. Consumer preferencesThe claim, the judge wrote, “ignores the fact that handbags are important to many women, not only to express themselves through fashion, but to help them in their everyday lives.”
If the merger goes through, it would unite Tapestry's Coach, Kate Spade and Stuart Weitzman brands with Capri's Versace, Jimmy Choo and Michael Kors.
Versace was among the luxury brands that would be combined if the Capri and Tapestry merger went ahead. (Photo by Scott Olson/Getty Images/Getty Images)
JETBLUE, SPIRIT AGREE TO TERMINATE MERGER DUE TO REGULATORY ISSUES
Jet Blue and Soul
JetBlue and Spirit finalized their merger in March 2024 after it was determined that it was the “best path forward” as the two airlines were unlikely to meet the July 2024 deadline for a deal, regulatory and regulatory approvals. to receive
The two companies envisioned the merger as a way to create a national low-fare competitor to America's Big Four airlines, United, Delta and Southwest.
A federal judge in January blocked a proposed merger between JetBlue and Spirit after agreeing with the Justice Department that the deal would hurt low-cost air travel.
FTC sued to block $4 billion merger of mattress companies
JetBlue and Spirit scrapped their planned merger amid regulatory scrutiny. (Photo by Joe Raedle/Getty Images/Getty Images)
Tempor Sili and Mattress Company
Temporarily and Mattress Co. proposed a $4 billion deal in May 2023 in which the mattress supplier would buy the retailer, though that deal is currently in the works. Legal risk.
The FTC in July voted 5-0 bipartisan to block a merger that would unite the world's largest mattress supplier and the world's largest mattress retailer, citing concerns about the competitive impact on the industry as well as prices facing consumers. He threw a box.
Tempur Sealy and Mattress Firm have argued that the bedding industry is “intensely competitive” because consumers can choose from “a diverse array of products, brands, prices and shopping channels.”
Final arguments in the federal court case were held in mid-December, although a decision has yet to be announced.
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UnitedHealth Group and Amedisys
The Justice Department filed a lawsuit in November to block UnitedHealth Group's proposed $3.3 billion purchase of Amedisys, a home health company that provides hospice services.
The agency argues that the deal would destroy competition in the home health and hospice industry, hurting patients, insurers and nurses in the process. In announcing the complaint, Attorney General Merrick Garland said the agency wanted to investigate “unlawful consolidation and monopolies” in the health care industry.
On a website supporting the deal, Optum, a subsidiary of UnitedHealth Group, argued that there is a high degree of competition in the home health and hospice care industries and that the merger would increase rather than weaken competition.