Partner Harry Robins discussed the Federal Trade Commission’s (FTC’s) recent warning letters advising merging companies of the potential risks of proceeding with deal closings whose reviews had not yet been completed by the FTC.
According to Harry, the FTC’s move to start issuing the warnings was either political messaging, a genuine acknowledgement of the agency's constrained resources, or a combination of both. When announcing the change, FTC officials cited a “tidal wave of merger filings” they said have strained the agency’s ability to fully investigate deals ahead of deadlines. But whatever the motivation, Harry said, the letters are not likely to keep parties from closing their deals.