In the Matter of ARKO: Non-Competes in Mergers & Acquisitions

Cahill Gordon & Reindel – The Federal Trade Commission recently agreed to settle its allegations that a non-compete agreement between parties to a transaction to acquire gas stations was anticompetitive, demonstrating that the FTC will continue to scrutinize all aspects of a merger or acquisition. The FTC and the Antitrust Division of the U.S. Department of Justice have expressed heightened concerns over non-compete agreements (as well as non-solicitation agreements) over the past few years. While this decision is not the first to address a non-compete agreement within the context of an acquisition or merger, it illustrates the FTC’s continued efforts to rein in non-compete agreements that it considers to be overbroad in scope or duration.

Read the full post at Cahill Gordon & Reindel