US Government Shutdown Looms, Threatening Merger Reviews
A US federal government shutdown is imminent, potentially impacting merger enforcement and reviews. Despite this, certain filings can still be submitted, but responses and reviews may be delayed.
The Committee on Foreign Investment in the United States (CFIUS) will pause all transaction reviews during the shutdown. No comments or reviews of submissions are expected during this period, as seen in the 2025 shutdown. Parties with pending or planned transactions should assess CFIUS timelines and prepare for potential delays.
The Department of Justice (DOJ) and Federal Trade Commission (FTC) have contingency plans in place. They will continue accepting and processing Hart-Scott-Rodino (HSR) filings, but reduced staffing may impact the pace of merger reviews and litigation. Approximately 60% of the DOJ Antitrust Division's employees and 50% of the FTC Bureau of Competition's employees will be designated as essential personnel. HSR waiting periods will continue, but early termination requests will not be granted during the shutdown.
Both agencies will seek extensions or suspensions of deadlines for ongoing merger litigation if a shutdown occurs. However, they will proceed if denied.
Parties involved in mergers and acquisitions should anticipate potential delays and prepare accordingly. While certain filings can still be submitted, responses and reviews may be postponed until the government reopens. The DOJ and FTC will make efforts to minimize disruptions, but reduced staffing may impact the progress of merger enforcement and reviews.
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