FTC Announces Jurisdictional Threshold for Merger Notifications, Filing Fee Reductions
The HSR premerger notification system requires that parties notify the FTC, US Department of Justice, and the Federal Trade Commission of their intent to complete a transaction if it meets or exceeds certain jurisdictional limits, unless there is an exemption. The thresholds are adjusted yearly based on the gross national product. The threshold changes are as follows:
The base statutory size-of-transaction threshold, the lowest threshold requiring notification, will increase to
$126.4 million
.
The upper statutory size-of-transaction test, requiring notification for all transactions that exceed the threshold (regardless of the size-of-person test being satisfied), will increase to
- $505.8 million.The statutory size-of-person lower and upper thresholds (which will apply to deals valued above $126.4 million but not above $505.8 million) will increase to $25.3 million
- and $252.9 million
- , respectively.HSR Filing Fee ChangesThe FTC is also required to update filing fee thresholds and amounts on an annual basis. Filing fee thresholds and filing fee amounts will be adjusted according to the percentage change of the Consumer Price Index. These changes will take effect 30 calendar days after the Federal Register notice is published.
