2301003 Informal Interpretation

us-ftc-hsr-informal-interpretations-75ce8dccb59adf2b9017ce41eac386ee2301003 Informal InterpretationGuidance

Date
Rule
801.40, 801.50
Staff
Kristin Shaffer
Response/Comments

Based on the description you have provided, we view the JV’s acquisition of Party A’s assets as separate from the formation, thus the JV’s acquisition of Party A’s assets may be reportable.

Question

From: Shaffer, Kristin <kshaffer@ftc.gov>
Sent: Thursday, January 26, 2023 12:21:36 PM (UTC-05:00) Eastern Time (US & Canada)
To: [Redacted]
Cc: HSRHelp <HSRHelp@ftc.gov>
Subject: RE: Joint Venture Formation

[Redacted]

Based on the description you have provided, we view the JV’s acquisition of Party A’s assets as separate from the formation, thus the JV’s acquisition of Party A’s assets may be reportable.

Best regards,

Kristin

From: [Redacted]
Sent: Wednesday, January 25, 2023 5:52:15 PM (UTC-05:00) Eastern Time (US & Canada)
To: HSRHelp <HSRHelp@ftc.gov>
Subject: Joint Venture Formation

Hello,

In connection with the formation of a unincorporated entity joint venture, one entity’s assets (Party A) will be contributed to the joint venture in exchange for cash only (above $50M as adjusted). Other parties will contribute other assets or cash in exchange for membership interests, but no party will have a controlling interest in the noncorporate JV entity. Is Party A’s transaction considered a reportable transaction (i.e., a purchase by the joint venture, assuming the size of the parties threshold is met) or a contribution in the formation of the joint venture which would not be reportable because no one is acquiring a controlling interest?

Many thanks in advance for the guidance.

She inberg, Samuel I.
From: 	HSRHelp
Se nt: 	Thursday, January 26, 2023 12:22 PM
To: 	Walsh, Kathryn E. ; Berg, Ka ren E. ; Musick, Vessel ina; Sheinberg, Samuel I. ; Six, Anne; Wh itehead, Nora;
Fetterman, M iche ll e
S ubj ect : 	FW: Jo int Venture Formation
From: Shaffer, Kristin <ks haffe r@ ftc.gov>
Se
To:
Cc:
Subject: RE: Joint Venture Formation
Ba sed on the description you have provided, w e view the JV's acquisition of Pa rt y A' s assets as separ ate from the
-formation , thu s the JV's acqui si tion of Party A' s assets may be reportabl e.
Best regards,
Kristin
Kri st in Sh affer
Attorney
Pr emerger Notificat ion Office
Federal Trade Commission
202- 326-2388 I kshaf fer@hc. g ov
:00) Eastern Time ( US & Canada)
To: HSRHe lp < HSRHelp@ftc. gov>
Subject: Joint Venture Formation
He ll o,
In connection w ith the format ion of a un incorporated ent ity joint v enture , one ent it y' s asset s (Party A) will be
c ont ri buted to the jo i nt v enture in exchange for ca sh on ly (above $SOM as adjusted). Other part ies wi ll c ont ri bute other
assets or ca sh in exchange fo r membership i ntere st s, but no part y will have a contro lling interest in the nonco r po r ate JV
ent ity. Is Party A's transaction considered a reportab le t r an saction (i.e., a purchase by the joint v enture , assuming the
si ze of the parties thresho ld is met ) or a contr i but ion in the format ion of the jo i nt ventu re which wo uld not be
r eportab le because no one is acquiring a cont rolling interest?
Man y thank s in adv an ce for the guidance.
From:
Sent :
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