Skip to main content
Date

Tags:

Rule
802.4
Staff
Sam Sheinberg
Response/Comments

We agree, so long as title to the inventory has not passed to a US entity.

Question

From: Sheinberg, Samuel I.


Sent:
Friday, February 16, 2018 12:59:24 PM


To:
[Redacted]

Cc: [Redacted]


Subject:
RE: 802.4 Question

 

[Redacted]

We agree, so long as title to the inventory has not passed to a US entity.

 

Have a nice weekend.


Sam

 

From: [Redacted]

Sent: Friday, February 16, 2018 11:23 AM

To: Walsh, Kathryn E.; Berg, Karen E.; Carson, Timothy; Shaffer, Kristin; Sheinberg, Samuel I.; Whitehead, Nora


Subject: FW: 802.4 Question

 



From:
[Redacted]

Sent: Friday, February 16, 2018 11:22:40 AM


To:
[Redacted]

Cc: [Redacted]


Subject:
802.4 Question

We are writing to confirm our understanding that the transaction described below would not be HSR reportable.  Companies A and B are both foreign persons under the HSR Rules. Company A, through its wholly-owned foreign subsidiary, Company C, will acquire 100% of the voting shares of Company D, a wholly-owned foreign subsidiary of Company B. Please assume that the size of transaction and size of person tests are satisfied.

Company D holds plants located outside of the United States, the fair market value of which are less than $50 million (as adjusted), and foreign inventory (i.e., inventory located outside of the United States), the fair market value of which is greater than $50 million (as adjusted). Company D made aggregate sales in or into the United States of over $50 million (as adjusted) in its most recent fiscal year.

The transaction is not exempt pursuant to 802.51 because Company D made aggregate sales in or into the United States of over $50 million (as adjusted) in its most recent fiscal year. However, the transaction is exempt under 802.4 because the value of the non-exempt assets, the foreign plants, does not exceed $50 million (as adjusted). Company B's inventory, which is located outside of the United States, would not be considered a U.S. asset or an asset to which U.S. sales were attributable. See Int. 0603024, https://www.ftc.gov/enforcement/premerger-notification-program/informal-interpretations/0603024.

Best regards,

[Redacted]

About Informal Interpretations

Informal interpretations provide guidance from PNO staff on the applicability of the HSR rules to specific fact situations. They do not necessarily reflect the position of the Commission. You should not rely on them as a substitute for reading the Act and the Rules themselves. These materials do not, and are not intended to, constitute legal advice. 

Learn more about Informal Interpretations.