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New HSR Filing Thresholds

January 27, 2017

On January 19, 2017, the Federal Trade Commission (the "FTC") announced that it will increase the dollar-based thresholds that determine whether parties are required to notify federal antitrust authorities about a transaction under the Hart-Scott-Rodino Antitrust Improvements Act ("HSR").  The FTC is required to revise various HSR thresholds annually, based on the change in gross national product. The new thresholds will go into effect 30 days after they are published in the Federal Register, which will take place shortly.  The following are some of the more important changes:

  • The threshold for the "size of transaction" test will be raised from $78.2 million to $80.8 million.  An acquisition may be reportable if the value of the voting securities, non-corporate interests and/or assets held as a result of the transaction is above this threshold and it meets the "size of person" test.
  • The "size of person" test will generally be met if either the acquiring or acquired party has annual net sales or total assets of at least $161.5 million and the other party has annual net sales or total assets of at least $16.2 million.  These thresholds had previously been set at $156.3 million and $15.6 million, respectively.
  • Satisfaction of the "size of person" test will not be required, however, if the transaction is valued at more than $323 million (previously $312.6 million).  Such transactions are reportable unless an exemption applies.
  • The new thresholds do not affect the applicable filing fees, but the thresholds that determine the fees have been revised.  Under the new thresholds, a fee of $45,000 will be required for transactions valued in excess of $80.8 million but less than $161.5 million, $125,000 for transactions valued at $161.5 million or greater but less than $807.5 million, and $280,000 for transactions valued at $807.5 million or greater.

The new HSR threshold modifications also apply to certain other thresholds and exemptions. Click here to read a full copy of the FTC's announcement, including all of the revised thresholds.

Parties contemplating a transaction are strongly encouraged to seek legal advice to determine if the transaction triggers an HSR filing obligation pursuant to the revised thresholds. The failure to file when required to do so can subject parties to significant penalties.

If you have any questions concerning the foregoing, HSR generally or any exemptions therefrom, please contact your Seward & Kissel relationship attorney.



About Seward & Kissel LLP

Seward & Kissel LLP, founded in 1890, is a leading U.S. law firm with an international reputation for excellence. We have offices in New York City and Washington, D.C.

Our practice primarily focuses on corporate, litigation and restructuring/bankruptcy work for clients seeking legal expertise in the financial services, corporate finance and capital markets areas.  The Firm is particularly well known for its representation of major commercial banks, investment banking firms, investment advisers and related investment funds (including mutual funds and hedge funds), master servicers, servicers, investors, distressed trade brokers, liquidity providers, hedge fund administrators,  broker-dealers, institutional investors and transportation companies (particularly in the shipping area). 



This memo  may be considered attorney marketing and/or advertising. Prior results do not guarantee a similar outcome.  The information contained in this memo is for informational purposes only and is not intended and should not be considered to be legal advice on any subject matter.  As such, recipients of this memo, whether clients or otherwise, should not act or refrain from acting on the basis of any information included in this memo without seeking appropriate legal or other professional advice.  This information is presented without any warranty or representation as to its accuracy or completeness, or whether it reflects the most current legal developments.