Proposed Pandemic Anti-Monopoly Act: Proposed Legislation Would Prevent Mergers and Acquisitions by Most Companies and Investment Funds During the COVID-19 Pandemic

Sullivan & Cromwell LLP - May 1, 2020

On Tuesday, Senator Elizabeth Warren (D-Mass.) and Representative Alexandria Ocasio-Cortez (D-NY-14) announced plans to introduce the Pandemic Anti-Monopoly Act (the “Proposed Act”). The Proposed Act would effectively halt mergers and acquisitions activity for certain types of companies and investment funds until the Federal Trade Commission (the “FTC”) “determined that small businesses, workers, and consumers are no longer under severe financial distress.” The categories of entities covered by the Proposed Act include (i) companies with over $100 million in revenues, (ii) financial institutions with over $100 million in market capitalization, (iii) private equity companies or companies that are majority-owned by a private equity company and hedge funds, and (iv) companies with an exclusive patent that impacts the crisis (such as for personal protective equipment).