A PYMNTS Company

US: Senate antitrust subcommittee tackles merger “tsunami”

By  |  March 10, 2016

US antitrust enforcers are dealing with a “tsunami” of high-value, complicated mergers that have stretched their resources, the heads of the two U.S. competition regulators told lawmakers on Wednesday.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Bill Baer, head of the Justice Department’s Antitrust Division, and Edith Ramirez, chairwoman of the Federal Trade Commission, told a Senate panel that 2015 was exceptionally busy with a large number of complex deals.

    “There was mention of a merger wave. We kind of look at it as a tsunami,” Baer told the Senate Judiciary Committee’s antitrust subcommittee. He attributed some of the volume to investors who jumped in once the economy improved.

    We’d love to be your preferred source for news.

    Please add us to your preferred sources list so our news, data and interviews show up in your feed. Thanks!

    Add as Preferred Source

    “We are incredibly busy. We are asking for additional resources,” said Ramirez, who did not elaborate. Baer has asked for an additional $16 million for a total of $180 million in funding for the antitrust division.

    But while volume was higher, the percentage of problematic mergers was unchanged, said Baer. The FTC sued to block six deals in the past year while the Justice Department opposed 11 in the 2015 and 2016 fiscal years.

    Lawmakers expressed concerns about two pending health insurance mergers and their possible impacts on the cost of healthcare and drugs. Anthem Inc announced its proposed $47 billion acquisition of Cigna Corp last July, the same month that Aetna Inc said it planned to buy Humana Inc for $37 billion.

    The Justice Department is currently reviewing both deals. Baer said they would be assessed both locally and nationally, including the cost to employers and impact on markets. “These are transformational mergers. We are going from five national (insurers) to three.”

    Full Content: Reuters

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.