Private Equity Deals Face More Antitrust Scrutiny Under Proposal

Private equity firms are looking at increased exposure to antitrust review under a proposal that would subject more mergers and acquisitions to extensive reporting requirements.

The proposed rule from the Federal Trade Commission and Justice Department’s Antitrust Division would expand the meaning of a “person” that must report a transaction for antitrust review under the Hart-Scott-Rodino Act.

The new definition would include the acquiring company’s associated entities, such as affiliates. That would enlarge the size of many prospective acquirers, one of the considerations in whether a deal gets antitrust scrutiny.

The tweak in particular would push more private equity-driven deals ...