USA Trends and Developments Contributed by: Elena Rubinov, George Casey, Heiko Schiwek, Vinita Sithapathy, Pierre-Emmanuel Perais and Clara Pang, Linklaters LLP
Antitrust Regulators have intensified their scrutiny of vertical mergers due to concerns that deals of this nature could reduce competition or lead to unfair market advan- tages, and new rules governing merger notifications under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 have expanded the information required to complete the notification form on the antitrust front. Technological advances and regional differences have made it harder for regulators to assess the competitive impact of proposed mergers. Antitrust enforcement policies have also seen a shift under the current administration. A mix of deregulato- ry momentum and selective enforcement has created uncertainty for companies pursuing mergers generally, including in the energy sector. The administration has signalled its intention to move away from the Biden administration Federal Trade Commission’s (FTC’s) aggressive scrutiny of mergers of energy explora- tion and production companies. Andrew Ferguson, the new chairman of the FTC under President Trump, issued dissents against FTC attempts to block Exxon Mobil’s acquisition of Pioneer Natural Resources and Chevron’s acquisition of Hess Corp during the Biden administration.
Energy companies may also face scrutiny of transac- tions that affect energy prices for consumers, reflect- ing increasing bipartisan support for affordable ener- gy. This is especially relevant given increased demand for data centres post the AI boom, which could lead to instability surrounding energy prices. Companies looking to engage in M&A in the energy sector should keep their focus on antitrust compliance to contend with these changes in policy.
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