🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

U.S. Senate passes bill to raise fees on biggest mergers

Published 06/08/2021, 08:48 PM
Updated 06/08/2021, 09:36 PM
© Reuters. FILE PHOTO: The U.S. Capitol building is pictured at sunset on Capitol Hill in Washington, U.S., November 27, 2019. REUTERS/Loren Elliott

WASHINGTON (Reuters) - The U.S. Senate passed a bill on Tuesday that would increase fees that companies planning the biggest mergers pay to government antitrust agencies and give those agencies bigger budgets.

The bill - co-sponsored by Democrat Amy Klobuchar, the top antitrust senator, and Chuck Grassley, the top Republican on the Senate Judiciary Committee - would lower the fee for smaller mergers under $161.5 million to $30,000 from $45,000. But for deals worth $5 billion or more, the fee would rise to $2.25 million from $280,000.

"Now that my bill with Senator Grassley passed the Senate, the Federal Trade Commission and Department of Justice's Antitrust Division are one step closer to having additional resources to conduct rigorous reviews of large mergers," Klobuchar said in a statement.

The antitrust measure was included in a Senate package aimed at boosting the country's ability to compete with Chinese technology. The bill must pass the House of Representatives to be sent to the White House for President Joe Biden to sign into law.

The Federal Trade Commission and the Justice Department's Antitrust Division assess mergers to ensure that they comply with antitrust law.

The measure would increase authorizations to each, giving the FTC a budget of $418 million, while the Antitrust Division would receive $252 million.

Under a budget proposed by the Biden administration, the FTC would get $389.8 million for the next fiscal year. That is an increase from $351 million this year, or about 11%. Also under Biden's plan, the Antitrust Division would see its budget increase to $201 million from $185 million, an increase of 8.6%.

© Reuters. FILE PHOTO: The U.S. Capitol building is pictured at sunset on Capitol Hill in Washington, U.S., November 27, 2019. REUTERS/Loren Elliott

Grassley said in a statement that the current system of assessing mergers and working to stop anti-competitive practices was "outdated" and "not getting the job done."

"I'm glad to see my colleagues in the Senate also recognize this issue and support it (the bill) today,” he said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.