DOJ and FTC seek information on serial takeovers

The U.S. Department of Justice (DOJ) and the Federal Trade Commission (FTC) have launched a public investigation into the serial takeover and roll-up strategies.

More specifically, the stated goal of the investigation is to “identify sectors of the economy impacted by serial takeovers.”

The Department of Justice and the FTC appear to be concerned that smaller, unreported transactions could allow certain companies to gain control of a product, service or labor market without disclosing the full extent of the takeover strategy to law enforcement. Accordingly, the agencies formally requested that consumers, businesses, professional and trade associations, and others provide the following information:

• Examples of serial acquisitions
• The effects of serial takeovers
• Business practices related to serial acquisitions
• Declared business objectives of serial acquisitions
• Ownership and control of entities engaged in serial takeovers

This investigation supplements a request for information issued by the DOJ, FTC, and the U.S. Department of Health and Human Services seeking to understand how specific healthcare transactions may increase consolidation in the healthcare market. It is also worth noting that the Merger Guidance issued by the DOJ and FTC in December 2023 addresses the agencies’ concerns about mergers that are part of a series of multiple acquisitions.