Novel Divestiture Ruling Likely Leaves Merger Landscape Intact

A federal appeals court broke new ground by unwinding a merger after a challenge by a rival, rather than a regulator, but the novel decision likely reflected the perfect plaintiff with the perfect claim, rather than a sea change in the way business deals are policed, according to experts.

The first-of-its-kind decision, while “certainly an interesting post that’s been set in concrete,” is unlikely to upend the current enforcement model, according to Rich Snyder, a Freshfields Bruckhaus Deringer LLP antitrust attorney in Washington.

But it’s still an important ruling showing that divestiture is achievable with a “compelling plaintiff” ...