News
FTC opposition to CSL-Talecris acquisition may have signaled tougher agency stance on US business mergers
Financial Times
When the Federal Trade Commission (FTC) said it would seek an injunction to stop the proposed acquisition of closely held Talecris Biotherapeutics by Australia’s CSL Limited, the parties involved were surprised at what they thought was a very “unexpected outcome,” said a source familiar with the situation.
On May 27, the FTC stated that it would plan to strike down a merger between the two companies because competition in markets for certain plasma-derivative proteins would be whittled from three to two in the case of one product, and five to four in another. Additionally, the FTC’s complaint pointed generally to the fact that consolidation had trimmed competitors in the space to five in 2009 from 13 in 1990.
Though reports point to new hardball leadership at the Department of Justice, the FTC could be vying for the title of new sheriff in town.
