Some items on our site have recently moved. Visit our News Hub for selected articles, special reports, podcasts and other resources.
Black underrepresentation in the acquisition of divested assets raises questions for gatekeepers at FTC and DOJ
22 December 2021 00:00
Divestitures are part and parcel of the US regulatory landscape: When a deal raises red flags, the merging companies offer to shed parts of their businesses, in a bid to get the proposal over the line. But who buys those divested assets and businesses? According to an investigation by MLex’s sister publication FTC Watch, black-owned and black-backed businesses are missing out. In fact, over a recent three-year period, no African American businesses have been involved in acquiring divested assets. It’s something that goes to the heart of the merger operations of both the Federal Trade Commission and the Department of Justice because they are the regulators that sign off on acquisitions of this kind and, therefore, are the gatekeepers of divestitures. The federal agencies argue that they’re just applying the rules; But black businesses and lawyers who spoke to FTC Watch argue that the underrepresentation of minority acquisitions in divestitures is a result of structural racism.
13 December 2021 00:00 by Kathleen MurphyFTC approves only the most experienced, well-financed divestiture buyers to ensure that competition lost from a merger will be replaced or even enhanced.
James Panichi Senior Editor, Asia Pacific
James, an Australian journalist with over 25 years’ experience in print and electronic media, helps to oversee MLex’s coverage of regulatory risk in Asia, with special attention to Australia and New Zealand. In 2016, James was appointed as MLex’s managing editor for continental Europe, overseeing the Brussels bureau’s coverage of EU regulatory affairs and managing a team of 16 journalists in Brussels and Geneva. Previously James worked for the European Voice newspaper, before joining the... Read more
Kathleen Murphy Senior Reporter
Kathleen Murphy is a senior reporter for FTCWatch and previously served as an editor in the MLex Washington, DC, office.Murphy worked as a reporter and editor for CQ Roll Call, Stateline.org and Internet World. Early in her career, she served as the Marco Island bureau chief and columnist for the Naples (Fla.) Daily News.Murphy was Marymount University’s inaugural journalist in residence for the 2019 to 2020 academic year. She earned degrees from Yale Divinity School... Read more