Category: Mergers & Acquisitions

Posted on

GUARDING THE AMERICAN DREAM: RESTRICTING INSTITUTIONAL ACQUISITIONS TO PRESERVE FAMILY HOMEOWNERSHIP

A Note by Kyle Laird

Download the full Note here.

Since the real estate market collapse of 2008-2009, the American housing market has seen a plethora of changes.[1] Cost of living has skyrocketed, making the American Dream unattainable for many.[2] Cost of living has risen for a multitude of reasons, including high interest rates, housing price influxes, and new market competitors.[3] Homeownership is essential for building wealth and a retirement: families can build equity through the gradual price increase, tax deduction incentives, and capital gains exclusions on sales, setting up generational wealth.[4] Further, home equity is often the largest component of net worth, a great incentive to fostering financial growth.[5] The American home ownership rate has decreased since its peak in 2004 and has hovered around sixty-five percent since.[6] Congress has made attempts to spark a resurgence, but it has struggled finding the … Read the rest

Posted on

HIGH EXPECTATIONS: WHAT RESCHEDULING MARIJUANA COULD MEAN FOR THE CANNABIS INDUSTRY

A Note by Elsie Layman

Download the full Note here.

On January 12, 2024, the U.S. Department of Health and Human Services (HHS) released a review addressed to the U.S. Department of Justice’s Drug Enforcement Administration (DEA) that recommended marijuana (Cannabis sativa L.) be rescheduled from Schedule I to Schedule III of the Controlled Substance Act.[1] The unredacted recommendation was released as a result of the effort of Matthew Zorn, who filed a Freedom of Information Act complaint against HHS in September 2023.[2] Zorn announced the recommendation would be released on January 11, 2024 on his blog, writing: “I win . . .  Impossible just takes a few weeks.”[3] The release of this recommendation is a win not only for Zorn and people who enjoy the drug recreationally, but for the U.S. cannabis market, which was valued at $13.2 billion in 2022.[4]

[1]… Read the rest

Posted on

FROM GUIDELINES TO GRIDLOCK: THE CHALLENGES FACING DOJ AND FTC’S NEW MERGER GUIDELINES AND THE PATH FORWARD

A Note by James Zhang

Download the full Note here.

The year of 2023 has seen the lowest level of M&A activity in over a decade, since the period after the 2008 global financial crisis.[1] Inflation, rising interest rates and fear of a recession halved Global M&A deal values to $2.5 trillion USD from their peak of more than five trillion dollars in 2021.[2] In the midst of such difficult situations, increasing regulation scrutiny has cast yet another shadow over the flickering future of the M&A market.

On December 18, 2023, the U.S. Department of Justice (DOJ) and the Federal Trade Commission (FTC) released the 2023 Merger Guidelines.[3] This is the final version after gathering public feedback from the draft version released in July 2023.[4] This guideline marks another step forward of the Biden administration’s aggressive and interventionalist antitrust policy.[5] It not only lowers … Read the rest

Posted on

Consolidation in the Agricultural Manufacturing Industry: Does John Deere’s Proposed Buyout of Precision Planting Violate Section 7 of the Clayton Act?

By Ryan Harding

Download full note here.

In the fall of 2015, John Deere attempted to buy Precision Planting: a specialty manufacturer of precision planting equipment. The government objected to this sale under Section 7 of the Clayton Act. This Note will examine the technology of John Deere and Precision Planting and determine whether the acquisition of Precision Planting by Deere is legal. Finally, this Note will recommend that the government take further action to prevent continued consolidation in the agricultural manufacturing industry.… Read the rest

Posted on

ASX-SGX Merger: What Should Matter?

 

Currently, the Australian government is considering the merits of a proposed takeover by the Singapore Exchange Limited (SGX) of the Australian Stock Exchange (ASX). The over-$8 billion deal has the goal of creating a dominant force in the Asian-Pacific region and a globally-salient exchange. In fact, the merged exchange would “create the world’s fifth-largest market operator by share value.”  The discussion should be focused on the viability of the merger, especially the potential impact on investors, the region, and the world. Debates about the pros and cons would seemingly be productive to decide whether or not the deal would be the right path to take in regards to the ASX, an exchange that some say would become “irrelevant” without merging with SGX. The talks since the merger was proposed have devolved however to the levels of political infighting. In the current scrum of the Australian Parliament, a few themes … Read the rest

Posted on

3G’s Whopper of a Problem: the Loss of the Super Fan

On September 2, 2010, 3G Capital announced that it planned to acquire Burger King Holdings. The deal itself is valued between $3 billion and $4 billion with 3G currently working on the tender offer of $24 per share for the company’s outstanding shares. With Burger King being the world’s second largest hamburger fast-food chain, it was not difficult for 3G to find financing for this highly-leveraged buyout. However, is 3G truly ready to tackle Burger King’s problems?

3G Capital is a private-investment firm based in New York with ties to Brazil. Even though Burger King is its first acquisition, 3G Capital brings prior consumer products and retail experience to the table through its previous investments in companies like Anheuser-Busch InBev. Additionally, through “investments in the Wendy’s and Carl’s Jr. restaurant chains,” 3G was able to learn about the fast-food industry. According to Diane Brady in her article, … Read the rest

Posted on

Comcast and NBC Universal: The Implications of Big Media Mergers in an Increasingly Smaller World

Normal
0

false
false
false

EN-US
X-NONE
X-NONE

MicrosoftInternetExplorer4


/* Style Definitions */
table.MsoNormalTable
{mso-style-name:”Table Normal”;
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-qformat:yes;
mso-style-parent:””;
mso-padding-alt:0in 5.4pt 0in 5.4pt;
mso-para-margin-top:0in;
mso-para-margin-right:0in;
mso-para-margin-bottom:10.0pt;
mso-para-margin-left:0in;
line-height:115%;
mso-pagination:widow-orphan;
font-size:11.0pt;
font-family:”Calibri”,”sans-serif”;
mso-ascii-font-family:Calibri;
mso-ascii-theme-font:minor-latin;
mso-hansi-font-family:Calibri;
mso-hansi-theme-font:minor-latin;}

I.
Introduction
     
Comcast's proposed takeover of NBC Universal is expected to completely
restructure the entertainment industry's landscape. Analysts, investors, and
public interest groups alike have responded strongly to the anticipated
agreement, which is expected to be finalized imminently. The merger of the
largest American cable company with one of the largest entertainment
enterprises in the world would give the combined entity control over
approximately one out of every five viewing hours in the United States. [1] Not
surprisingly, the deal will be heavily scrutinized and raise considerable
questions of antitrust law, media diversity, and the future of internet usage.
This article will explore the implications of big media mergers in light … Read the rest

Posted on

From the 2016 Olympics Games to Antitrust Law: Brazil Steps Towards Globalization

I.                   Introduction 

Rio de Janeiro will be the first Olympic location in the history of South America. This is the result of Brazil gaining status internationally and integrating to the global market. Apart from sports, globalization has had a great impact on the business transactions and also in the rules enacted in Brazil. An increasing  number of international merger companies and nations had switched a red light on the antitrust law regime for merger control that coexists in the many jurisdictions.[1] The different views of antitrust law in each country are important to determine the approach and practical implications of the review systems application.[2] In the merger context, there are significant burdens in international business operations when companies are required to comply with a diversity of procedural requirements in domestic regimes regulations. Over sixty nations have merger notification requirements. Transactional costs are elevated when … Read the rest

Posted on

Marvel and Disney: A Merger with Character

I.  Introduction

On August 31, 2009, The Walt Disney Company (“Disney”) and Marvel Entertainment, Inc. (“Marvel”) entered into a merger agreement in which Disney would acquire Marvel. [ 1 ] At this time, it is up to debate whether the acquisition is a horizontal, vertical, or conglomerate/lateral transaction. Both Disney and Marvel are involved in a very broad range of products and services, but both companies center their business models on intangibles, particularly characters. As a result, much of Disney and Marvel’s business revolves around intellectual property. Unlike the products of technological and software companies, the intellectual property rights created by Disney and Marvel are less concrete but more versatile, and decidedly harder to enforce. As such, this article will consider the nature of characters as property rights, particularly those of Disney and Marvel, as they relate to the Department of Justice (“DoJ”) and Federal Trade Commission (“FTC”) Merger Guidelines … Read the rest

Posted on

M & A’s- I’ll Drink to That

I.                      Introduction

Amidst the economic downturn over the world, many industries have seen a stunt in growth.  In fact, during recessions, often consolidation among competing businesses within an industry is the only alternative to extinction.  This is evidenced in the banking industry (i.e. Merrill Lynch sold to Bank of America in order to avoid bankruptcy) [1] as well the auto industry (i.e. Government gives Chrysler thirty day deadline to merge with Fiat). [2] Yet, in recent years, it is the beer industry that has seen more mergers and acquisitions than arguably any other sector.  This article will discuss the reasoning behind the consolidation within the industry, examine the strategic approaches taken in the industry when merging with or acquiring a competitor, and finally, the future of mergers and acquisitions (M&A’s) within the brewing industry.

II.                   Discussion

The increasing consolidation within the beer industry is … Read the rest