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Daily Journal: Lawmakers Propose Moratorium on ‘Risky’ MergersApril 29, 2020
O’Melveny lawyers Scott Schaeffer and Courtney Dyer are quoted in this Daily Journal article discussing mergers and acquisitions during the coronavirus pandemic. US Senator Elizabeth Warren and Representative Alexandria Ocasio-Cortez announced plans to introduce the Pandemic Anti-Monopoly Act to temporarily halt “risky mergers and acquisitions,” this article reported. The announcement came days after House Antitrust Subcommittee Chairman David Cicilline proposed temporarily banning mergers during the pandemic.
“There are, I think, policy issues behind [Cicilline’s] proposal that reach far beyond antitrust. Antitrust is concerned with competition and consumer welfare, but I think there might be other animating factors behind the specific proposal,” said Schaeffer. “This is not my speculation, but the representative actually said the goal is to prevent large [Private Equity] firms or dominant companies to take advantage of the financial difficulties affecting most other firms, by engaging in a buying spree.” Schaeffer and Dyer added they do not believe a proposal such as Cicilline’s has ever passed into law.
Daily Journal subscribers can read the full article here.