Mergers blocked or challenged by the Biden administration in 2024

the Biden-Harris administration The company has taken an aggressive stance in scrutinizing proposed mergers and acquisitions in recent years, resulting in many deals being blocked or temporarily halted due to regulatory action.

The Federal Trade Commission (FTC) and the Antitrust Division of the Department of Justice (DOJ) are the two primary regulatory bodies responsible for… Review mergers And challenge them in court if there are concerns about competitive influence.

These two agencies have challenged several high-profile mergers in recent years, many of which have been blocked by the courts or abandoned by the participating companies in 2024.

Increased scrutiny of mergers means that “potential antitrust risks have been part of the conversation from day one,” FTC Chair Lina Khan said in a November interview with the Council on Foreign Relations. “Law enforcement, I want people to think about whether their deal is going to violate the law or not, and that’s progress.”

Federal Trade Commission: Find out how many mergers and acquisitions were blocked during the Biden administration

Here’s a look at some of the mergers that have been blocked, abandoned or vetoed in 2024 amid federal antitrust scrutiny.

Albertson and Kroger

The Federal Trade Commission and state law enforcement prevailed this month in lawsuits filed against the proposed $25 billion merger between Albertsons and Kroger, which would have been the largest merger ever in the United States. Grocery industry.

The two companies expressed disappointment that the courts rejected their proposed merger in the wake of the ruling. Albertsons and Kroger plan to divest more than 500 C&S Wholesale Grocers stores to address concerns about the competitive impact on the grocery industry.

Albertsons terminated the merger agreement following the rulings. It also filed a lawsuit alleging that Kroger breached the merger contract by failing to divest certain assets, failing to address regulators’ comments, rejecting a stronger divestiture buyer and failing to cooperate with Albertsons. A Kroger spokesman responded to the allegations, telling the Wall Street Journal that Albertsons was evading blame for the failed merger and had breached the merger contract itself.

Federal judge blocks Kroger from buying Albertsons for $25 billion

Capri and fabric

Luxury fashion companies Capri and Tapestry finalized their merger in November 2024 after a judge ruled in late October that a tie-up between them would undermine competition in the luxury handbags and accessories space.

The ruling rejected the argument made by the companies that handbags are non-essential and price-sensitive items Consumer preferencesThis assertion “ignores that handbags are important to many women, not only to express themselves through fashion but to assist in their daily lives,” the judge wrote.

Had the merger gone through, Tapestry’s Coach, Kate Spade and Stuart Weitzman brands would have been united with Capri’s Versace, Jimmy Choo and Michael Kors.

JETBLUE and SPIRIT agree to terminate merger due to regulatory issues

JetBlue and Soul

JetBlue and Spirit finalized their merger in March 2024 after deciding it was the “best path forward” when it became clear that the two airlines were unlikely to receive legal and regulatory approvals by the July 2024 deadline for concluding the deal.

The two companies envisioned the merger as a way to create a low-cost national competitor to the so-called Big Four airlines — American, United, Delta and Southwest.

A federal judge in January blocked a proposed merger between JetBlue and Spirit after agreeing with the Justice Department that the deal would hurt the availability of low-cost air travel.

Federal Trade Commission files lawsuit to block $4 billion mattress company merger

Tempur Sealy and the Mattress Company

Tempur Sealy and Mattress Firm proposed a $4 billion deal in May 2023 that would see the mattress supplier acquire the retailer, although the deal is currently in the works Legal risk.

The FTC cast a bipartisan vote of 5-0 in July to block the merger that would unite the world’s largest mattress supplier and largest mattress retailer due to concerns about the competitive impact on the industry as well as the prices facing consumers.

Tempur Sealy and Mattress Firm argued that the bedding industry is “highly competitive” as consumers can choose from “a variety of products, brands, price points and purchasing channels.”

Closing arguments in the federal court case were held in mid-December, although a decision has not yet been announced.

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United Health Group and Amicis

The Justice Department filed a lawsuit in November to block UnitedHealth Group’s $3.3 billion acquisition of Amedisys, a home health company that provides hospice services.

The agency argues that the deal would eliminate competition in the home health and elder care sector, hurting patients, insurers and nurses in the process. Attorney General Merrick Garland said in announcing the lawsuit that the agency wants to “check illegal consolidation and monopolization” in the health care industry.

Optum, a subsidiary of UnitedHealth Group, argues on a website supporting the deal that there is a high degree of competition in the home health and elder care industries and that a merger would enhance competition, rather than undermine it.