Christopher Zook, chief investment officer at CAZ Investments, analyzes the number of mergers and acquisitions deals made under Biden versus Trump.
Biden-Harris administration In recent years it has taken an aggressive approach in investigating proposed mergers and acquisitions, resulting in many deals being blocked or halted due to regulatory action.
The main regulatory bodies responsible for this are the Federal Trade Commission (FTC) and the Antitrust Division in the Department of Justice (DOJ). merger review and challenging them in court if there are concerns about competitive impact.
Both of those agencies have challenged several major mergers in recent years, many of which were blocked by courts or abandoned by the companies involved in 2024.
FTC Chairwoman Lina Khan said in a November interview with the Council on Foreign Relations that increased scrutiny of mergers means that “potential antitrust risks are part of the conversation from day one,” adding, “As a law enforcer “I want people to think about whether their deal is going to violate the law or not violate the law, and that’s progress.”
FTC: See how many mergers and acquisitions it blocked during the Biden administration
Federal Trade Commission Chairwoman Lina Khan has led the administration’s efforts to challenge the merger on competitive grounds. (Drew Angerer/Getty Images/Getty Images)
Here’s a look at some of the mergers that were blocked, abandoned or challenged in 2024 amid federal antitrust investigations:
Albertsons and Kroger
The FTC and state legal officials won a victory this month in lawsuits brought against the proposed $25 billion merger between Albertsons and Kroger, which would have been the largest merger ever. grocery industry,
Both companies expressed disappointment that the court rejected their proposed merger in the wake of the ruling. Albertsons and Kroger had planned to sell more than 500 stores to C&S Wholesale Grocers to address concerns about competitive impact on the grocery industry.
Albertsons terminated the merger agreement following the rulings. It also filed a lawsuit accusing Kroger of violating the merger agreement by not divesting certain assets, failing to address regulators’ response, rejecting strong divestiture buyers, and not cooperating with Albertsons . A Kroger spokesperson rejected those claims, telling The Wall Street Journal that Albertsons was avoiding blame for the failure of the merger and that it itself had violated the merger agreement.
Kroger and Albertsons abandoned their merger following the court rulings. (Getty Images/Getty Images)
Federal judge blocks Kroger’s $25B acquisition of Albertsons
capri and tapestry
Luxury fashion companies Capri and Tapestry ended their merger in November after a judge ruled in late October that their alliance would weaken competition in the luxury handbags and accessories sector.
The judgment rejected the argument made by the companies that handbags are non-essential goods that are price-sensitive. consumer preferencesThe judge wrote that the claim “ignores that handbags are important to many women, not only for expressing themselves through fashion but also to aid in their daily lives.”
If the merger had gone ahead, it would have united Tapestry’s Coach, Kate Spade and Stuart Weitzman brands with Capri’s Versace, Jimmy Choo and Michael Kors.
Versace was one of the luxury brands that would have been combined after the Capri and Tapestry merger. (Scott Olson/Getty Images/Getty Images)
JetBlue, Spirit agree to end merger over regulatory issues
jetblue and spirit
JetBlue and Spirit ended their merger in March after determining that it was “the best path forward” when it became clear that both airlines would have to meet the legal and legal requirements to conclude the deal by the July deadline. Regulatory approval was unlikely to be obtained.
The two companies envisioned the merger as a way to create a national low-fare competitor to the so-called Big Four airlines – American, United, Delta, and Southwest.
A federal judge in January blocked a proposed merger between JetBlue and Spirit after agreeing with the Justice Department that the deal would affect the availability of low-cost air travel tickets.
FTC files lawsuit to block $4B merger of mattress companies
JetBlue and Spirit abandoned their planned merger amid regulatory scrutiny. (Joe Riddle/Getty Images/Getty Images)
Tempur Sealy and Mattress Firm
Tempur Sealy and Mattress Firm proposed a $4 billion deal in May 2023 that would see the mattress supplier acquire the retailer, although that deal is currently on hold. legal threat,
The FTC voted bipartisan 5-0 in July to block the merger, which would have united the world’s largest mattress supplier and the largest mattress retailer, over concerns about the competitive impact on the industry as well as increased prices faced by consumers. Will do.
Tempur Sealy and Mattress Firm have argued that the bedding industry is “highly competitive” because consumers can choose from a “diverse selection of products, brands, price points, and purchasing channels.”
Final arguments in the federal court case were held in mid-December, although the decision has not yet been announced.
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UnitedHealth Group and Amedisys
The DOJ filed a lawsuit in November to block UnitedHealth Group’s proposed $3.3 billion acquisition of Amedisys, a home health company that provides hospice services.
The agency argues that the deal would eliminate competition in the home health and hospice industry, hurting patients, insurers and nurses in the process. Attorney General Merrick Garland announced the lawsuit, saying the agency intended to “investigate unlawful consolidation and monopolization” in the health care industry.
Optum, a subsidiary of UnitedHealth Group, argued on a website supporting the deal that there is a high level of competition in the home health and hospice care industries and that the merger would increase rather than reduce competition.
