California business owners might be interested to learn that the potential merger between T-Mobile and Sprint has apparently fallen through. The two companies issued a joint statement on Nov. 4 that the merger would not happen.
Consumers in California may be concerned that they will lose the connection that they have with a brand if it merges with another company. The CEO of QVC has said that combining companies may actually lead to greater value for customers as well as add value for customers. L'Oreal says that it lets each brand that it owns be authentic and transparent.
California corporations that are considering acquisitions and mergers need to take care that they avoid violating the IRS regulations that cracked down on corporate inversions. This may require adjusting the ownership percentages so that the acquisition or merger will not effectively be an inversion.
Recent posts on this blog have looked at the topic of mergers and acquisitions, specifically with regard to regulatory challenges that can arise for companies competing in the same market. As we’ve noted, businesses can benefit greatly from working with experienced legal counsel throughout the merger review process.
We previously wrote about the proposed merger between daily fantasy sports competitors DraftKings and FanDuel. As we noted before, the companies together own about 90 percent of the market for daily fantasy sports, making their merger particularly concerning from an antitrust standpoint.
In previous posts, we’ve been looking at the topic of mergers and the merger review process. As we’ve noted, the aim of merger review is to determine whether there are any competitive concerns with a merger agreement. The Federal Trade Commission’s aim is to ensure a merger will not unfairly impact consumers and violate antitrust laws.
In our last post, we began looking at some of the legal aspects of corporate mergers, which involve not only potentially complicated filing requirements under state law, but also possible review by authorities responsible for enforcing federal antitrust laws.
When two corporations begin discussing the possibility of merging, there are a great many details to work out on the financial, structural/organizational, and legal levels. Under California law, the filing requirements for mergers vary depending on a number of factors, including the type of merger, the number of corporations involved, and the domicile in which the corporations exist.
Previously, we noted that it is important to work with experienced legal counsel to properly prepare for and navigate merger and acquisition transactions. These transactions affect acquiring companies and target companies differently. For acquiring companies, it important to consider how a proposed transaction would affect its capital structure.
California consumer advocacy groups have expressed opposition to a proposed merger CenturyLink Inc. and Level 3 Communications Inc., a deal for which CenturyLink has offered $34 billion. Recent reports have said that the transaction is expected to be completed by the end of September.