2410010 Informal Interpretation

us-ftc-hsr-informal-interpretations-5ad4ed863b4622a06713c48223149dfd2410010 Informal InterpretationGuidance

Date
Rule
801.11
Staff
Kristin Shaffer
Response/Comments

Yes, the value of the minority stake in Entity B should be included. If the acquisition of Entity C will take place prior to consummation of another acquisition, the revenue and assets of Entity C must be included in the evaluation of whether SOP is met for that other acquisition.

Question

From: Shaffer, Kristin <kshaffer@ftc.gov>
Sent: Thursday, October 3, 2024 3:29:14 PM (UTC-05:00) Eastern Time (US & Canada)
To: [Redacted]
Cc: HSRHelp <HSRHelp@ftc.gov>
Subject: RE: Size-of-Person

[Redacted]

Yes, the value of the minority stake in Entity B should be included. If the acquisition of Entity C will take place prior to consummation of another acquisition, the revenue and assets of Entity C must be included in the evaluation of whether SOP is met for that other acquisition.

Best regards,

Kristin

From: [Redacted]
Sent: Thursday, October 3, 2024 12:52:17 PM (UTC-05:00) Eastern Time (US & Canada)
To: HSRHelp <HSRHelp@ftc.gov>
Subject: Size-of-Person

Dear All,

If a non-corporate entity (Entity A) only holds a minority stake in another non-corporate entity (Entity B), does the value of the minority stake in Entity B need to be included in the asset calculation for the purposes of the size-of-person test? (It is understood that Entity A would not need to include Entity B's assets and revenues in the size-of-person calculation).

If Entity A has a pending acquisition of control of Entity C and this acquisition is expected to close next year, does Entity C need to be included in the valuation of assets for the size-of-person test now?

Thank you very much.

-
Sheinberg, Samuel I.
From: 	HSRHelp
Sent: 	Thursday, October 3, 2024 3:29 PM
To: 	Walsh, Kathryn E.; Berg, Karen E.; Musick, Vesselina; Sheinberg, Samuel I.; Six, Anne;
Whitehead, Nora; Fetterman, Michelle; Burton, June; Larson, Peter
Subject: 	FW: Size-of-Person
From: Shaffer, Kristin <kshaffer@ftc.gov>
Sent: Thursday, October 3, 2024 3:29:14 PM (UTC-05:00) Eastern Time (US & Canada)
To:
Cc: HSRHelp <HSRHelp@ftc.gov>
Subject: RE: Size-of-Person
Yes,	the	value of	the minority stake	in Entity	B	should be	included.	If the	acquisition of Entity C	will take	place	prior
to	consummation	of another acquisition,	the	revenue	and	assets	of Entity C must be	included	in the evaluation	of
whether	SOP	is	met for that	other	acquisition.
Best regards,
Kristin
Kristin Shaffer
Attorney
Premerger Notification Office
Federal Trade Commission
202-326-2388 | kshaffer@ftc.gov
From:
Sent: Thursday, October 3, 2024 12:52:17 PM (UTC-05:00) Eastern Time (US & Canada)
To: HSRHelp <HSRHelp@ftc.gov>
Subject: Size-of-Person
Dear	All,
If a	non-corporate	entity (Entity A)	only	holds	a minority stake	in	another non-corporate entity	(Entity	B),	does	the
value	of the minority	stake	in Entity B need to	be	included	in the	asset	calculation for the purposes of the	size-of-
person test? (It	is understood	that	Entity A would	not	need	to include	Entity B's	assets and revenues	in	the	size-of-
person calculation).
If Entity A has	a	pending	acquisition	of control of Entity	C and this acquisition	is expected to close next year, does
Entity C need	to	be	included in the	valuation of	assets	for the	size-of-person test now?
Thank you very much.
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