On January 22, 2024, the Federal Trade Commission (FTC) released the revised Hart-Scott-Rodino (HSR) Act jurisdictional thresholds for 2024. The FTC is required by law to revise the HSR Act monetary jurisdictional thresholds each year based on changes in the gross national product. The revised thresholds will become effective 30 days after notice is published in the Federal Register and will apply to transactions closing on or after the effective date. The 2023 thresholds will remain applicable for transactions that close before the effective date.
Minimum Filing Thresholds. Under the HSR Act, 15 U.S.C. §18a, transactions that exceed the "size-of-transaction" threshold and, if applicable, "size-of-person" thresholds must be reported to the FTC and the U.S. Department of Justice before they can close (unless an exemption applies). The revised thresholds for 2024 are:
Jurisdictional Test |
2023 |
2024 |
Size of Transaction (SOT) |
$111.4 Million |
$119.5 million |
Size of Person (SOP) |
$22.3 Million |
$23.9 Million |
Large Transactions—SOP Not Applicable |
$445.5 Million |
$478 Million |
Incremental Filing Thresholds. HSR filings may be required not only for initial purchases of voting securities valued in excess of the minimum SOT that can trigger a filing ($119.5 million for 2024), but also for subsequent purchases of voting securities that exceed incremental SOT thresholds. New HSR filings may be required for purchases of voting securities that result in the acquiring person's holdings crossing these higher, incremental thresholds, even if an HSR filing was made for previous purchases at a lower threshold. The incremental SOT thresholds for 2024 will be:
Notes
Filing Fees. Finally, if an HSR Act notification is required then there are tiered filing fees based on the SOT being reported. For 2024, the adjusted HSR Act filing fees are:
If you have any questions about these rule changes or HSR in general, please feel free to contact Michelle Yost Hale (202-973-8836), Ben Labow (415-947-2077), Kim Biagioli (202.937.8831), Beau Buffier (202-973-8948), Maureen Ohlhausen (202-973-8808), Taylor Owings (212-497-9507), Robin Crauthers (202-973-8839), Brendan Coffman (202-973-8891), or another member of the antitrust and competition practice at Wilson Sonsini Goodrich & Rosati.
[1] Filings may also be required if the acquiring person will hold 50 percent or more of an issuer’s outstanding voting securities as a result of the acquisition.