by Gregory Heltzer

The Federal Trade Commission (FTC) and Department of Justice (DOJ) both announced that they will have limited staff on hand to accept Hart-Scott-Rodino (HSR) premerger notification filings during the U.S. federal government shutdown.  The HSR Act requires that parties subject to the Act must wait 30 days before closing their transaction.  This waiting period provides the agencies with time to determine whether to challenge a transaction prior to closing.  During the shutdown, the FTC will continue HSR investigations to the extent that “a failure by the government to challenge the transaction before it is consummated will result in a substantial impairment of the government’s ability to secure effective relief at a later time.”  (See, FTC Shutdown Plan.)  Likewise, the DOJ will also prepare cases that must be filed due to expiration of the HSR waiting period.  (See, DOJ Shutdown Plan.)  We will provide updates if and when we learn more regarding the protocols for merger review during the shutdown.