Mergers that were blocked or challenged by the Biden admin in 2024
Published On Dec 26, 2024, 2:00 PM
The Biden-Harris administration has been actively scrutinizing mergers and acquisitions, resulting in the blocking or halting of several significant deals due to antitrust concerns. The Federal Trade Commission (FTC) and Department of Justice (DOJ) are playing pivotal roles in reviewing these deals, with several prominent mergers being abandoned or blocked in 2024. Key notable cases include the failed $25 billion merger between Albertsons and Kroger, the termination of the merger between luxury brands Capri and Tapestry, and the abandonment of the JetBlue-Spirit merger. The regulatory environment suggests a less favorable outlook for large mergers, especially in competitive industries like groceries, airlines, and health care.
Stock Forecasts
KR
Negative
Given the regulatory climate and the recent block of large mergers in the grocery sector, companies like Kroger (KR) may face downward pressure on their stock prices as uncertainties surrounding growth and market strategy increase.
CPRI
Negative
The luxury goods sector, specifically companies like Capri Holdings (CPRI) that attempted to merge with Tapestry, may face negative sentiment in the short term due to increased regulatory scrutiny that could hinder growth prospects and consolidation efforts.
UNH
Negative
UnitedHealth Group (UNH) may also experience downward pressure given the DOJ's recent move to block its proposed acquisition of Amedisys, creating uncertainty in its growth strategy within the health care sector.
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