Antitrust Byte Cited in “Mergers May Require ASC Divestment — Read This to Know What’s in Store”

Becker’s ASC Review

An Antitrust Byte, titled “Divestiture Process for Mergers,” authored by attorneys E. John Steren and Patricia M. Wagner, Members of the Firm in the Health Care & Life Sciences and Litigation & Business Disputes practices, was cited in Becker’s ASC Review, in “Mergers May Require ASC Divestment — Read This to Know What’s in Store,” by Angie Stewart.

Following is an excerpt:

To preserve competition, federal antitrust agencies may require parties to divest certain assets before allowing a merger, according to law firm Epstein Becker Green.

What you should know:

  1. The Federal Trade Commission and Department of Justice’s Antitrust Division sometimes require an entity to divest assets, such as a physician group or ASC, in order to preserve competition.
  2. This requirement is more common in transactions with a national scope. However, divestiture may be required in local transactions where one of a party’s multiple business lines poses a threat to competition.
  3. The FTC’s divestiture guidance, “Negotiating Merger Remedies,” is helpful for entities involved in a transaction that may require divestiture, as well as for parties that may want to acquire a divested asset.
  4. The guidance offers insight on the divestiture process, provisions and timing, as well as how the FTC evaluates buyers.