DAMITT Q1 2016 Update: Is the Use of Upfront Buyers Causing Longer Merger Investigations? Q1 2016 Update Confirms 2015 Trends

April 12, 2016

According to Dechert's Antitrust Merger Investigation Timing Tracker (DAMITT), the trend of longer investigations continues. Significant merger investigations lasted 9.6 months on average over the 12 months ending Q1 2016, about 20% longer than the 8.0 month average over the prior 12 months. The median length was 8.9 months through Q1 2016, compared to 7.6 months in the prior period. There are several potentially significant merger investigations in the pipeline that have been ongoing for more than 8 months and are likely to continue the trend of longer merger investigations. Also, the number of significant investigations, while comparable to the prior period, remained relatively flat, with 33 significant merger investigations during the 12-month period ending Q1 2016, compared to 32 during the prior 12-month period.

Perhaps most notable, DAMITT determined that when an "upfront buyer" is required by the agencies, as has been the case with greater frequency in recent years, merger investigations take about two months longer than when post-order buyers are permitted.

For more details, read "DAMITT: Is the Use of Upfront Buyers Causing Longer Merger Investigations? Q1 2016 Update Confirms 2015 Trends."