2408006 Informal Interpretation

us-ftc-hsr-informal-interpretations-a5ef5f50234fab47aa84d26b0a5c09bd2408006 Informal InterpretationGuidance

Date
Rule
801.1, 803.1
Staff
Nora Whitehead
Response/Comments

For the circumstances you describe, there would be two separate sets of filings, each with the appropriate fee. Please note in the cover letter and Item 3a that the sets of filings should be reviewed together.

Question

From: Whitehead, Nora <nwhitehead@ftc.gov>
Sent: Thursday, August 29, 2024 11:21:39 AM (UTC-05:00) Eastern Time (US & Canada)
To: [Redacted]
Cc: HSRHelp <HSRHelp@ftc.gov>
Subject: RE: Informal Interpretation Request

For the circumstances you describe, there would be two separate sets of filings, each with the appropriate fee. Please note in the cover letter and Item 3a that the sets of filings should be reviewed together.

From: [Redacted]
Sent: Tuesday, August 27, 2024 3:48:07 PM (UTC-05:00) Eastern Time (US & Canada)
To: HSRHelp <HSRHelp@ftc.gov>
Cc: [Redacted]
Subject: Informal Interpretation Request

We are writing to confirm the parties' filing obligations for a transaction in which there are two acquiring persons.

Pursuant to a single agreement and as part of a single transaction, Buyer 1 and Buyer 2 are each purchasing 50% of the non-corporate interests of two target entities (each, a “Target,” and together, the “Targets”). The Targets are indirectly owned by the same UPE. Buyer 1 and Buyer 2 do not share a UPE and are not setting up an acquisition entity to hold the non-corporate interests of the Targets; instead 50% of the non-corporate interests of each Target will be acquired by each of Buyer 1 and Buyer 2. Assume the size-of-transaction and size-of-person thresholds are met with respect to each of Buyer 1’s and Buyer 2’s acquisitions.

While not an identical situation, Premerger Notification Practice Manual, Fifth Edition, Interpretation #212 states that when “the acquiring entity has two UPEs, in general, each UPE must file a separate form and pay the appropriate filing fee” but does not provide for whether the acquired person must also file two separate forms. Given that it is a single transaction and the acquired person’s Item 5 information would not be different if it made two filings, it seems to us that the acquired person could file one form identifying both of the acquiring persons in Items 2(a) and 3(a) and, if applicable, overlap with respect to one or both of the acquiring persons in Item 7.

Can you please confirm that (a) each of Buyer 1 and Buyer 2 would be required to file a separate form but pay a single filing fee (as this is one agreement and one transaction) and (b) the acquired person could file a single form as described above?

Sheinberg, Samuel I.
From: 	HSRHe lp
Sent: 	Thursday, August 29, 2024 11 :22 AM
To: 	Wa lsh, Kathryn E.; Berg, Karen E.; Mus ick, Vesse li na; Shaffer, Kr ist in; She in berg, Samue l I. ;
Six, Anne; Fetterman, Miche lle; Burton, June; Larso n, Pete r
Subject: 	FW: In formal Interpretation Request
From: Whitehead, Nora <n wh itehead@ftc.gov>
Sent: Thursda y, Augu st 29, 20 24 11: 21:39 AM (UTC-05:00) Easte rn Time (US & Ca nada )
To:
Cc: HSRHe lp <HSRHelp @ftc.gov>
Subject: RE: Infor ma l Interpretation Request
For the circumstances you describe, there w ou ld be t w o separate set s of fi lings, each w i th the appropr iate fee. Plea se
note in the cov er letter and Item 3a that the sets of fi lings should be review ed together.
From: HSRHelp <HSRHe lp@ft c. gov>
Sent: Tuesday, August 27, 2024 3:48 PM
To: Walsh , Kathryn E. <kw alsh@ftc.gov>; Berg, Karen E. <KBERG @ftc.gov>; Mu sick, Vesse lina <v mu sic k@ft c.gov>;
Shaffer, Kristin <ks haffer @ftc.gov>; Sheinberg, Samuel I. <SSHEINBERG@ftc.gov>; Six, Anne <as i x@ ftc.gov>; W hitehead,
Nora <nwhi tehead @ftc.gov>; Fetterman, Michel le <mfetterman @ft c.gov>; Burton , June <jburton @ftc.gov>; Larson,
Peter <plarson @ftc .gov>
Subject: FW : Informa l Interpretat i on Request
From:
Sent: Tuesda y, Augu st 27 , 2024 3:48 :07 PM ( UTC-05:00) Easte rn Time ( US & Canada )
To: HSRHelp <HSRHe lp@ftc.gov>
Cc:
Subject: Infor mal Interpretation Request
PNOTeam,
We are wri ting to confirm the partie s' fi ling ob ligations for a tran saction in which there are t w o ac quir ing persons.
Pursuant to a single agreement and as part of a single transaction, Buy er 1 and Bu y er 2 are each purchasing 50% of the
non -corporate i ntere st s of tw o target ent it ies (each, a "Target ," and together, the "Targets") . The Targets are indirectly
ow ned by the same UPE. Bu y er 1 and Bu y er 2 do not share a UPE and are not setting up an acquisi tion entit y to hold the
non -corporate i ntere st s of the Target s; instead 50% of the non-corporate interest s of each Target wil l be acquired by
each of Bu y er 1 and Buy er 2. Assume the size-of-transacti on and si ze - of- person thre sho lds are met w i th respect to each
of Bu y er l ' s and Bu y er 2' s acquisit ion s.
While not an i denti cal si tuation , Premerger Not ification Practi ce Manua l, Fifth Ed i tion , Interpretation #212 states that
when " the acquiring ent it y has tw o UPEs, in general, ea ch UPE mu st fi le a separate form and pay the appropriate fi ling
fee" but does not provide for w hether the acquired person must al so file t w o separate forms. Given that it is a single
transaction and the acquired person' s Item 5 i nformat ion w ou ld not be di fferent if it made tw o fi li ngs, it seems to us
that the acquired person could file one form identi fy ing both of the acquiring person s in Item s 2(a) and 3(a) and, if
applicable, ov er lap w ith respect to one or both of the acquiring person s in Item 7.
1
Complete printed PDF page 1
Can you please confirm that (a) each of Buyer 1 and Buyer 2 would be required to file a separate form but pay a single
filing fee (as this is one agreement and one transaction) and (b) the acquired person could file a single form as described
above?
Best,
2
Complete printed PDF page 2

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