FTC Finds Consummated Merger Anticompetitive, Orders Assets to be Divested

Davis Polk partners Arthur Burke, Arthur Golden, Ronan Harty, Jon Leibowitz, Neal Potischman, Howard Shelanski and Jesse Solomon and counsel Christopher Lynch and Mary Marks authored a chapter in the November/December 2019 issue of The M&A Lawyer. The chapter discusses the FTC’s unanimous November 6, 2019 finding that a consummated 2017 merger of prosthetics manufacturers violated United States antitrust law, ordering the purchaser to divest completely the acquired assets. Though the merger was not reportable under the Hart-Scott-Rodino Act, the FTC nevertheless reviewed the transaction. Thus, this case serves as a reminder that non-reportable transactions may be subject to post-closing investigation and action.