Legal News

On February 1, 2021, the Federal Trade Commission (FTC) released the revised thresholds for determining whether companies are required to notify federal antitrust authorities about a transaction under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (HSR Act). If a proposed merger; acquisition of stock, assets or unincorporated interests; or other business combination meets certain thresholds, the parties must notify the FTC and the Department of Justice and observe a waiting...

UK Follows Global Trend To Enhance National Security Protections - The U.K. is the latest G-8 nation to propose enhanced protections against certain types of foreign direct investment. A proposed law before Parliament comes amid the U.K.'s separation from the EU. The breadth of businesses intended to be covered, without a number of the typical safe harbors, makes the new U.K. scheme broader in scope than any other foreign direct investment regulatory system of a major economy, including the......

US M&A Outlook: Rebounding Market Fuels Optimism for Deal Activity in 2021 - The U.S. M&A market faced unprecedented challenges in 2020 as a result of the COVID-19 pandemic. Dealmaking returned in full force by the end of the year, and economic and political conditions support a strong 2021 for U.S. M&A....By: Skadden, Arps, Slate, Meagher & Flom LLP

Transactions by special purpose acquisition companies, or SPACs, exploded in 2020, resulting in a 320% increase in the number of SPAC initial public offerings (IPOs) compared to 2019. SPACs have been around for 15 years and now are established as a legitimate alternative to a traditional merger or IPO. This is due in part to an evolution of the SPAC vehicle, which now offers enhanced investor protections and positions sophisticated managers as “sponsor teams” that guide the company through bot...

After nearly a decade of growth, global M&A activity in the first quarter of 2020 was down 39.1% by deal value year over year — comparable to levels seen in the first quarter of 2008, in the midst of the financial crisis. The chilling effects of the COVID-19 pandemic in the first half of the year translated to a significant backlog of M&A transactions. Approaching the end of 2020, however, dealmaking returned in full force, despite the ongoing human challenges imposed by the pandemic. Coupled.....

One of the biggest M&A developments over recent years has been a significant enhancing of foreign direct investment (FDI) and national security protections by G-8 members and others....By: Skadden, Arps, Slate, Meagher & Flom LLP

The European debt and equity markets shrugged off the impact of a nearly total shutdown due to COVID-19 at the end of the first quarter of 2020 to rebound with strong performances in the second half of the year. As activity resumed in the late spring, a number of key trends emerged, involving covenant flexibility in high-yield bonds as well as resilient equity markets in the face of both COVID-19 and the impact of pending Brexit regulation....By: Skadden, Arps, Slate, Meagher & Flom LLP

Many commentators predicted a boom in M&A and initial public offerings (IPOs) in the U.K. in 2020, a year that proved making predictions is a risky business. As we enter 2021, however, there are good reasons to believe that the worst of the pandemic will soon be behind us and we can be optimistic about the markets again. Strong signs indicate an appetite for large mergers, and the trillions of dollars held by fund managers set the stage for a revival of the IPO market....By: Skadden, Arps, Slate...

Despite unprecedented disruptions to the court system from the COVID-19 pandemic, plaintiffs continued to bring securities class actions at elevated levels in 2020 — a sign that filings will remain high in the year ahead. Based on data from Cornerstone Research through September 30, 2020, plaintiffs were on pace to file approximately 375 federal and state securities class actions through the end of the year. Although lower than the more than 400 actions filed in each of the previous three years...

The Delaware Court of Chancery’s docket exploded with expedited “broken” deal litigation in 2020, driven by the impact of COVID-19. Beyond pandemic-related merger litigation, stockholder plaintiffs remained focused on claims involving controlling stockholders and increased focus on claims against officers for breaches of the duty of care. There were also significant developments in connection with stockholder statutory books-and-records requests....By: Skadden, Arps, Slate, Meagher & Flom LLP