Pub K
Compliance With Gun-Jumping Rules Keeps M&A Deals On Track
Mayer Brown – One of the most common issues facing antitrust counsel advising a party to a pending transaction is counseling their client on how to avoid gun jumping. Put simply, in the U.S., gun jumping consists of preclosing activities by one or both parties that are inconsistent with the following requirements: (1) under the Hart-Scott-Rodino Act, the transaction can not be consummated until the HSR waiting period has expired or been terminated; and (2) that parties who are competitors for purposes of the antitrust laws continue to compete pending closing or after the transaction is terminated in the event that it does not close.