Following the announcement earlier this week that the US Department of Justice reached a settlement with American Airlines and US Airways regarding their proposed merger, reports are now looking at how the outcome can offer lessons for future mega-mergers.
Antitrust lawyer Mark Ostrau spoke with reporters regarding the effects of the settlement, noting that because the DOJ is not a private litigant, the regulator is more likely to take a settlement before going to trial.
According to Ostrau, companies in future merger deals should know that “if you’re going to make a deal, you can save yourself a lot of time by giving your best offer early” to the DOJ.
Debate among experts remains, however, as to whether the DOJ failed to meet its own demands. Baker & Hostetler lawyer Jonathan Lewis, however, said that because the airlines “were expecting to give up nothing,” the DOJ succeeded in the deal.
The merger between American Airlines and US Airways will create the world’s largest airline, according to reports. Had the DOJ and the airlines not settled, the case was scheduled for trial beginning November 25.
Full Content: Reuters
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Hess Shareholders Approve $53 Billion Merger with Chevron
May 28, 2024 by
CPI
EU Regulators Engage with Telegram as App Nears Critical Usage Threshold
May 28, 2024 by
CPI
EEX Offers Remedies to Address EU Antitrust Concerns Over Nasdaq Deal
May 28, 2024 by
CPI
BRG Expands European Competition Practice with New Expert Team in Brussels
May 28, 2024 by
CPI
UK Law Empowers Regulators to Fine Big Tech Without Court Approval
May 28, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Merger Guidelines Retrospective
May 21, 2024 by
CPI
Mergers of Complements
May 21, 2024 by
CPI
Personality Traits, Private Equity, and Merger Analysis
May 21, 2024 by
CPI
The 2023 Merger Guidelines: Lessons in the Importance of Incipiency, Modern Economics, and Monopsony
May 21, 2024 by
CPI
The 2023 Merger Guidelines: Sharpening Merger Analysis
May 21, 2024 by
CPI