FTC Announces New HSR Thresholds 2016

Effective February 25, 2016

On January 26, 2016, the Federal Trade Commission ("FTC") announced the annual revisions to the filing thresholds set forth in the Hart-Scott-Rodino Antitrust Improvements Act ("HSR Act"). The revised thresholds will be effective on February 25, 2016.

The HSR Act sets forth two primary notification thresholds: the size of transaction threshold and the size of person thresholds. These thresholds have been revised for 2016 as follows:

Threshold                                                 2015 Level           2016 Level

Size of Transaction                                   $76.3 million        $78.2 million

Size of Person1 (lower)                             $15.3 million        $15.6 million

Size of Person (higher)                             $152.5 million       $156.3 million

Size of Person Threshold Exemption2    $305.1 million       $312.6 million

The 2016 revisions also increase the size of transaction thresholds for acquisitions of additional voting securities of the same issuer (or issuers within the same acquired person). Notification under the HSR Act is required for 2016 when a party acquires voting securities that have a cumulative value of:

• $78.2 million;
• $156.3 million;
• $781.5 million;
• 25% of the shares if their value is at or above $1,563 million; and
• 50% of the shares if their value is above $78.2 million.3

1. To satisfy the Size of Person threshold, one party must have sales or assets meeting the higher threshold and the other party must have sales or assets meeting the lower threshold.
2. Transactions valued at or above $312.6 million are reportable without regard to whether the transaction satisfies the Size of Person threshold.
3. Once an acquiring person holds 50% or more of the voting securities of an issuer, all subsequent acquisitions of securities of that issuer are exempt.