Why Corporate America is watching it so closely
It’s the first time in four decades that the Justice Department has sued to block a merger between companies canada goose outlet phone number in canada goose outlet in uk different lines of business. It signaled canada goose outlet store uk a stark change canada goose outlet woodbury in how the government enforces antitrust canada goose outlet online store law and an unusual tack under a Republican president who says he promotes business and opposes regulation.The canada goose outlet miami Justice Department sued to block AT from buying canada goose outlet trillium parka black CNN parent company Time Warner in November. Since then, other companies haven’t behaved like they’re worried about an antitrust crackdown.CVS announced it was canada goose vest outlet buying Aetna, Disney said it canada goose stockists uk would buy Fox, canada goose outlet shop and Cigna sought to buy Express Scripts. All those deals are massive in scale and could pose antitrust problems.CVS (CVS) already controls the sale and insurance of prescription drugs, and buying Aetna would give it power over how they are prescribed by a network of canada goose outlet new york city doctors. Disney, the largest movie studio, would control canada goose outlet las vegas 20th Century Fox, the fourth largest. The fourth largest health insurer, Cigna, would canada goose outlet in toronto own the largest prescription benefits manager, Express Scripts.Opening statements in the AT Warner case are scheduled for Wednesday in Washington.The Justice Department argues that the deal would give AT the power to charge its competitors more for Time Warner’s content, or to block the content entirely from the likes of Comcast, Verizon, and Charter.Judge Richard Leon says the trial could last two months, twice as long as the companies expected.How he decides the case could shape the future of the media industry, which canada goose outlet orlando is canada goose outlet factory struggling to adapt to rapidly changing customer and advertiser behavior.Companies like Time Warner, which make movies and TV shows, are combining with companies like AT canada goose outlet mississauga which deliver that content to customers. And everybody is trying to canada goose outlet canada contend with Netflix (NFLX), Amazon (AMZN) and other digital brands.Related: Trump’s Justice Department puts Corporate America on noticeDespite the Justice Department’s tough stance, the rest of Corporate America isn’t exactly running scared from mergers.For one, AT (T) and Time Warner could be a special case. It remains unclear whether the Justice Department’s action was politically motivated. canada goose outlet location Trump has spoken out against the deal both as president and as a candidate, and he has frequently criticized CNN.Even if the Justice Department’s complaint is bona fide, one case doesn’t make a trend.”AT Warner is significant, but there are other mergers that the industry is watching closely, too,” said Maurice Stucke, antitrust canada goose outlet store toronto law professor at the University of Tennessee canada goose outlet seattle and a former Justice Department prosecutor in the Clinton and George W. Bush administrations.In https://www.canadagoosejacketonlines.ca particular, lawyers at merging companies are watching Bayer’s $66 billion bid for Monsanto, which would reduce the number of farm seed, fertilizer and pesticide companies from five to four. Bayer and Monsanto expect the regulatory review to end in the next couple months.To settle potential antitrust concerns, Bayer has already said it would divest some of its assets, agreeing to sell a business unit to rival BASF once the deal closes.Those kinds of concessions have typically won over regulators. Yet Bayer wants to buy Monsanto at a desperate time for American farmers. US farm profit fell to $61 billion in 2016, the lowest since 2006, and less than half the income farms earned in 2013, according to the USDA.There’s no indication one way or another how the Justice Department canada goose outlet real will act on Bayer canada goose outlet in chicago Monsanto. A spokesman declined to comment. But if the Justice Department decides canada goose outlet niagara falls that the Bayer and Monsanto’s merger would hurt canada goose outlet uk sale farmers and consolidate the seed industry too much despite Bayer’s canada goose factory outlet vancouver promise of concessions that could indicate a significant change for antitrust enforcement.”If the Justice Department blocks Bayer Monsanto, that would mark a new dawn canada goose outlet for antitrust,” Stucke said.Bayer bid for Monsanto (MON) in September 2016, a month before AT said it wanted to buy Time Warner (TWX). The Justice Department may not be ready to rule on the other recently announced mega mergers for a year or more. So only time will tell whether the Justice Department is really cracking down on antitrust or whether AT Warner was a red herring.
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