HSR

The acronym HSR refers to the Hart-Scott-Rodino Anti-trust Improvement Act 1976 known as the Premerger Notification Program. This is a program whereby firms wishing to embark upon a merger or acquisition must notify the FTC and the DOJ of their intentions.

The Federal Trade Commission website describes the reasons for the program and the filing process as

Premerger Notification Program

The Hart-Scott-Rodino Act established the federal premerger notification program, which provides the FTC and the Department of Justice with information about large mergers and acquisitions before they occur. The parties to certain proposed transactions must submit premerger notification to the FTC and DOJ. Premerger notification involves completing an HSR Form, also called a “Notification and Report Form for Certain Mergers and Acquisitions,” with information about each company’s business. The parties may not close their deal until the waiting period outlined in the HSR Act has passed, or the government has granted early termination of the waiting period.

The FTC administers the premerger notification program, and the staff of the Premerger Notification Office is available to answer questions about how and when to file.

Merger Arbitrage Limited produces a dedicated page with live updates of all HSR early termination notices. When these are issued, the firms are able to proceed and consummate the deal. Traders are advised to be aware of these updates as the target stock price can be affected dramatically.