Christopher Zuke, chief investment officer at CAZ Investments, analyzed the number of merger and acquisition deals that took place under the Biden-Trump administration.
The Biden-Harris administration has taken an aggressive stance in recent years in scrutinizing proposed mergers and acquisitions, resulting in regulatory actions blocking or suspending some transactions.
The Federal Trade Commission (FTC) and the Department of Justice's Antitrust Division (DOJ) are the primary regulatory agencies responsible for reviewing mergers and challenging them in court if there are concerns about the impact on competition.
These two agencies have challenged several high-profile mergers in recent years, some of which were blocked by courts or abandoned by the companies involved in 2024.
FTC Chair Lina Khan said in an interview with the Council on Foreign Relations in November that increased scrutiny of mergers means “potential antitrust risks are part of the conversation from day one,” adding: “As a law enforcement officer, I am asking the public to: We're thinking about whether their transactions violate the law, and that's progress.”
FTC: See how many mergers and acquisitions were blocked during the Biden administration
Federal Trade Commission Chair Lina Khan has led the administration's efforts to challenge mergers on competitive grounds. (Drew Angerer/Getty Images/Getty Images)
Here are some of the mergers blocked, abandoned, or put on hold in 2024 under federal antitrust scrutiny.
albertsons and kroger
This month, the FTC and state attorneys general won a lawsuit filed against the proposed $25 billion merger between Albertsons and Kroger, which would have been the largest merger in history in the grocery industry.
Following the ruling, both companies expressed disappointment that the court rejected their merger proposal. Albertsons and Kroger had planned to sell more than 500 stores to C&S Wholesale Grocers to address concerns about the competitive impact on the grocery industry.
Albertsons canceled the merger agreement in response to this ruling. Kroger also violated the merger agreement by failing to sell certain assets, failing to respond to regulatory feedback, rejecting a stronger divestiture buyer, and failing to cooperate with Albertsons. filed a lawsuit. A Kroger spokesperson denied the claims, telling the Wall Street Journal that Albertsons was avoiding responsibility for the failed merger and that Albertsons itself was in violation of the merger agreement.
Kroger and Albertsons abandoned their merger after a court ruling. (Kroger: Charles Bartram/Lexington Herald-Leader/Tribune News Service via Getty Images | Albertsons: Shelby Tauber/Bloomberg via Getty Images/Getty Images)
Federal judge blocks Kroger's $25 billion acquisition of Albertsons
Capri island and tapestry
Luxury fashion companies Capri and Tapestry halted their merger in November 2024 after a judge ruled in late October that their partnership would hurt competition in the luxury handbag and accessories sector.
The ruling rejected the company's argument that handbags are non-essential goods whose price is influenced by consumer preference, and the judge said that this argument “for many women, handbags are not only a means of self-expression through fashion; , ignoring the fact that it's an important thing that helps us express ourselves.” their daily life. ”
If the merger went ahead, it would have combined Tapestry's Coach, Kate Spade and Stuart Weitzman brands with Capri's Versace, Jimmy Choo and Michael Kors.
Versace was one of the luxury brands that would have been combined if the Capri-Tapestry merger went ahead. (Photo by Scott Olson/Getty Images/Getty Images)
JetBlue and Spirit agree to halt merger due to regulatory issues
jet blue and spirit
JetBlue and Spirit say it is “the best path forward” after it became clear the companies were unlikely to receive legal and regulatory approval by the July 2024 deadline to close the deal. As a result, the merger was dissolved in March 2024.
The companies envisioned the merger as a way to create a national low-fare competitor to the so-called Big Four carriers of American Airlines, United Airlines, Delta Air Lines, and Southwest Airlines.
A federal judge blocked the JetBlue-Spirit merger in January, agreeing with the Justice Department that it would harm the availability of cheap flights.
FTC sues to block $4 billion mattress company merger
JetBlue and Spirit abandoned their merger plans after facing regulatory scrutiny. (Photo by Joe Radle/Getty Images/Getty Images)
Tempur Sealy and Mattress Firm
Tempur Sealy and Mattress Company proposed a $4 billion deal in May 2023 in which the mattress supplier would buy the retailer, but the deal is currently in legal jeopardy.
In July, the FTC announced a bipartisan move to block a merger that would combine the world's largest mattress supplier and largest mattress retailer, citing concerns about the competitive impact on the industry as well as the prices faced by consumers. The vote was 5-0.
Tempur Sealy and Mattress Companies argued that the bedding industry is “intensely competitive” because consumers can choose from “a wide variety of products, brands, price points, and purchasing channels.”
Closing arguments in the federal court case were held in mid-December, but a verdict has not yet been announced.
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UnitedHealth Group and Amedisys
The Justice Department filed a lawsuit in November to block UnitedHealth Group's proposed $3.3 billion acquisition of Amedisys, a home health care company that provides hospice services.
The agency claims the agreement eliminates competition in the home health and hospice industry, harming patients, insurance companies and nurses in the process. Attorney General Merrick Garland said in announcing the lawsuit that the agency wants to “check illegal consolidation and monopolization” in the health care industry.
Optum, a subsidiary of UnitedHealth Group, said on its website in support of the deal that a high degree of competition exists in the home health and hospice care industry, and a merger would enhance competition rather than weaken it. Then he claimed.
