U.S. Mergers Face Antitrust Delays Amid Virus Disruptions

(Bloomberg) -- Companies seeking U.S. approval for mergers could face delays in completing their deals as federal antitrust officials seek extra time to complete reviews amid disruptions caused by the coronavirus.

The Justice Department’s antitrust division said in a statement Tuesday that it will ask companies for an additional 30 days for merger reviews that are in their final stages. The Federal Trade Commission said it will seek extensions as needed.

The move threatens to delay some high-profile mergers now under investigation, including AbbVie Inc.’s $63 billion deal for Allergan Plc, Google’s pending $2.1 billion takeover of FitBit Inc. and United Technology Corp.’s planned acquisition of Raytheon Co.

The FTC said extensions may be necessary because disruptions caused by the coronavirus could hamper companies’ ability to produce documents and make employees available for interviews. Antitrust officials also need information from third parties in merger reviews.

“FTC staff is fully operational but the commission will not sacrifice the scope and thoroughness of its investigations due to current limitations and timing concerns,” the agency said in statement. “We are looking at each case individually and will seek to adjust timing as needed.”

The Justice Department’s antitrust division also plans to consider criminal investigations, according to a person familiar with the matter.

“These process changes will ensure that the division can continue to review transactions efficiently and effectively,” Makan Delrahim, the head of the division, said in a statement.

Antitrust investigations of major mergers can last a year or longer. While the timelines can vary, once a company fully complies with the FTC or Justice Department’s request for information, the agencies have 30 days to approve or challenge a deal unless the companies agree to more time. Companies often negotiate timing agreements that extend that period.

The Justice Department said that for pending and future mergers, officials will request an additional 30 days to timing agreements once companies have complied with document requests.

Criminal investigations are affected by statutes of limitations that require prosecutors to file charges within a certain time period. Companies often agree to extend those periods.

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