This Week in Congress

Thursday, April 3rd @1:00pm
Hearing on the “Standard Merger and Acquisition Reviews Through Equal Rules Act of 2014”

On Thursday, the House Judiciary Committee’s Subcommittee on Regulatory Reform, Commercial and Administrative Law will hold a legislative hearing to examine the draft legislation mentioned above.  The legislation would purportedly impose the DOJ’s preliminary injunction standard in merger cases onto the FTC, and also limit the FTC’s use of administrative proceedings in merger reviews.

The confirmed witnesses are:

• Deborah Garza, Partner, Covington & Burling LLP
• Tad Lipsky, Partner, Latham & Watkins LLP
• Richard Parker, Partner, O’Melveny & Myers LLP

A link to the draft legislation, once available, will be posted.

2237 RHOB

posted by Anant Raut

NY Governor Signs Legislation Permitting Certain Hospital Affiliations to Avoid Antitrust Review

On October 23, NY Governor Andrew Cuomo signed Assembly Bill 7993 into law. The legislation permits the Nassau Health Care Corp. (“NuHealth”), a public benefit corporation, to partner with other health systems on Long Island, NY, without antitrust risk. The legislation is a response to the US Supreme Court’s Phoebe Putney decision earlier this year, which cast doubt on whether certain transactions of this nature were subject to the State Action Doctrine, and was passed unanimously by the NY Assembly and Senate. The legislation is intended to demonstrate that the Legislature has clearly intended to displace competition in approving such potential affiliations, which the Supreme Court held was critical in finding the State Action Doctrine applicable to a proposed transaction of this nature. A link to the text of the legislation can be found at:

http://public.leginfo.state.ny.us/menugetf.cgi

Posted by Jim Burns

Hub City Mayors Press DOJ to Clear USAir/AA

Mayors of cities that serve as hubs for USAirways and American Airlines have co-signed a letter to the Justice Department, urging the Antitrust Division to drop its challenge to the USAirways/American Airlines merger, The Hill reports.  The letter touts the benefits of the merger to their local economies, characterizes it as necessary to compete with recently merged Delta-Northwest and United-Continental, and rather pointedly mentions that the latter was cleared by the current Antitrust Division.

The letter also oddly states that the cities themselves will be  at a “competitive disadvantage” to the hub cities of Delta and United.

The letter is signed by the mayors of Charlotte (NC), Chicago (IL), Dallas (TX), Fort Worth (TX), Miami (FL), Philadelphia (PA), and Phoenix (AZ).  The full article may be read here.

posted by Anant Raut

NY Dept of Health Proposes AT Immunity for Hospital Mergers, Collabos

According to the Healthcare Association of New York State, the New York Dept of Health has proposed regulations that would provide state action immunity for hospital collaborations and mergers approved via a Certificate of Public Advantage (COPA).

The full post may be found here.

posted by Anant Raut

Airline Unions Plan Capital Hill Rally Seeking Support for Proposed Merger

http://www.bizjournals.com/phoenix/morning_call/2013/09/us-airways-american-look-to-rally.html

The Phoenix Business Journal is reporting that several airline unions are planning a rally on Capital Hill seeking to generate support for the proposed American/US Airways merger. Lawmakers from Texas, North Carolina and Pennsylvania (where the carriers have hubs) are expected to attend.

A link to the Business Journal article, with further details, is attached.

Posted by Jim Burns

Washington Congressman Urges GAO Study on Hospital Mergers

In an August 15 letter, Congressman Jim McDermott of Washington has urged the Government Accountability Office (GAO) to conduct a study of hospital mergers, hospital acquisitions of physician practices, and hospital acquisitions of ancillary business (such as ambulatory surgery centers, diagnostic and testing facilities, and labs), contending that such transactions can “result in less competition, higher prices for health care services, and greater use of services.” He also contends that these mergers are having an adverse affect on the Medicare program.

A copy of Congressman McDermott’s letter can be found at the following link:

Click to access gaoletter.pdf

Posted by Jim Burns

GAO Report issued for Airline Merger Hearing

Attached below is a link to a GAO report discussing the implications of the proposed American/USAirways merger that was the subject of a congressional hearing on 6/19. Further detailson the hearing can be found in an earlier post on this blog by Anant Raut.

Click to access 655314.pdf

Posted by Jim Burns

Senator Grassley Urges Careful Review of Smithfield Merger

As reported in the Iowa Republican (link below), Senator Chuck Grassley is urging the DOJ to carefully review the proposed $4.7 billion merger of Smithfield foods with Shaunghai International, a large Chinese conglomerate. Smithfield, the world’s largest pork producer, has a significant presence in Iowa. Grassley is also requesting that the U.S. Committee on Foreign Investment (CFIUS) carefully review the transaction.

http://theiowarepublican.com/2013/pork-deal/

posted by Jim Burns

Congress Members Weigh In on American/USAirways Merger

The airline trade press is reporting that over 100 members of Congress have signed on to a letter urging regulators not to require American Airlines to divest landing slots at Reagan National Airport in Washington D.C. as a condition to approving its proposed merger with USAirways. The 11 billion transaction, announced in February, is currently being reviewed by the DOT and the Justice Department. A link to one of the articles describing the development can be found at

http://www.routes-news.com/1-news/1478-congress-members-defend-aa-us-airways-slots

Posted by Jim Burns