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2011 Hart-Scott-Rodino Threshold Requirements

The Federal Trade Commission’s annual changes to the dollar thresholds under the Hart-Scott-Rodino Antitrust Improvements Act (HSR Act) become effective on February 24, 2011. Signaling an improvement in the economy, the revisions, which are based on the change in gross national product, increase the dollar thresholds necessary to trigger the HSR Act’s reporting requirements.

Increased “Size-Of-Transaction” and “Size-Of-Person” Thresholds

The HSR Act generally applies to acquisitions of voting securities, assets, and noncorporate interests that meet the “size-of-person” and/or “size-of-transaction” tests. Any merger or acquisition closing on or after February 24 may be reportable if the transaction meets the following revised criteria:

  • Size of Transaction - The transaction is reportable if (1) the transaction is valued in excess of $263.8 million (up from $253.7 million), or (2) the transaction is valued between $66 million (up from $63.4 million) and $263.8 million and the “size-of-person” test is also met.
  • Size of Person - For transactions in category (2) above, the transaction is only reportable if one party has total assets or annual net sales of at least $131.9 million (up from $126.9 million) and the other party has total assets or annual net sales of at least $13.2 million (up from $12.7 million).

While the HSR reporting thresholds have increased, the filing fees remain unchanged and range from $45,000 to $280,000 depending on the size of the transaction.

Increased Interlocking Directorate Thresholds

The FTC also increased the thresholds under Section 8 of the Clayton Act, effective January 25, 2011. As revised, Section 8 prohibits a person from serving as a director or officer of two competing corporations if each corporation has capital, surplus, and undivided profits totaling more than $26,867,000 (up from $25,841,000), unless the competitive sales of either corporation are less than $2,686,700 (up from $2,584,100).

Click here to read the FTC’s alert.

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Copyright © 2021, Hunton Andrews Kurth LLP. All Rights Reserved.National Law Review, Volume I, Number 53

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Leading businesses set a “tone at the top” that reflects sound governance. At the same time, government regulators and law enforcement officials are raising the bar for corporate compliance, dramatically expanding their civil, criminal, administrative and legislative investigations. Andrews Kurth lawyers stay in touch with ethical best practices and counsel our clients on evolving standards in Corporate Compliance, Investigations and Defense (CCID).

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