Series 79 practice questionmediumHart-Scott-Rodino Act
During the HSR review process, the FTC issues a 'second request' to the merging parties. What does this mean?
- AThe agencies require additional information and documents to continue their antitrust review✓ Correct answer
- BThe transaction has been approved with conditions
- CThe parties must refile their original HSR notification with corrections
- DThe transaction has been blocked and the parties must abandon the deal
Explanation
Why A — The agencies require additional information and documents to continue their antitrust review
A second request is a formal demand for additional information and documents issued by the reviewing agency when it needs more data to assess the competitive effects of a proposed transaction. Compliance with a second request can be extremely costly and time-consuming, often taking months and requiring the production of millions of documents. The waiting period is extended and does not expire until both parties have substantially complied with the second request.
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