• FTC Announces Annual Revision to HSR Jurisdictional Thresholds
  • March 1, 2017 | Authors: Robert G. Kidwell; Farrah C. Short; Bruce D. Sokler
  • Law Firm: Mintz Levin Cohn Ferris Glovsky Popeo P.C. - Boston Office
  • The Federal Trade Commission (FTC) announced on January 19, 2017 increased jurisdictional thresholds for premerger notification filings under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the HSR Act). The FTC revises the thresholds annually based on changes in the gross national product. The new thresholds will be effective February 27, 2017 and will apply to all transactions closing on or after that date.

    Revised HSR Thresholds

    A transaction is reportable if:

    Size of Transaction Threshold

    The acquiring person will hold, as a result of the transaction, an aggregate total amount of voting securities and assets of the acquired person valued in excess of
    $323 million;
    or
    The acquiring person will hold, as a result of the transaction, an aggregate total amount of voting securities and assets of the acquired person valued in excess of
    $80.8 million, AND the Size of Person thresholds below are met.

    Size of Person Threshold

    Either the acquiring or the acquired person has at least $16.2 million in total assets or annual net sales, and the other person has at least $161.5 million in total assets or annual net sales.


    The HSR Act requires parties engaged in certain transactions (including mergers, joint ventures, exclusive licensing deals, and acquisition of voting securities, assets or noncorporate interests) to file a notification and report form with the FTC and the Antitrust Division of the Department of Justice (DOJ), and to observe the statutorily prescribed waiting period (usually 30 days, or 15 days in the case of cash tender offers and bankruptcy) prior to closing, if the parties meet the Size of Transaction and Size of Person thresholds (absent any applicable exemptions).

    Filing Fees

    Filing fees for the premerger notification remain unchanged, but the FTC has revised the thresholds used to determine applicable fees. Under the revised thresholds, the filing fees are as follows:

    Filing Fee

    New Filing Fee Thresholds

    $45,000

    For acquisitions valued at $80.8 million or more up to $161.5 million.

    $125,000

    For acquisitions valued at $161.5 million or more up to $807.5 million.

    $280,000

    For acquisitions valued at $807.5 million or more.