FTC’s Khan Urges Blocking Mergers That Threaten Competition

The transcript discusses the Federal Trade Commission's (FTC) approach to mergers under the Biden administration, particularly through a letter from FTC Chair Lina Kahn to Senator Elizabeth Warren. Kahn expresses skepticism about behavioral fixes and asset divestitures as remedies for mergers, advocating for blocking problematic deals outright. The discussion highlights the FTC's increased enforcement actions and scrutiny of major deals, such as Lockheed Martin's proposed acquisition of Aerojet Rocketdyne, which faces opposition from competitors and concerns about its impact on the defense sector.

What is Lina Kahn's view on behavioral fixes in mergers?

• They are not necessary for large companies.

• They are the best solution for mergers.

• They often fail to prevent anti-competitive conduct.

• They are easy to monitor and effective.

Since becoming FTC chair, what has Lina Kahn emphasized?

• Increasing enforcement and challenging deals.

• Focusing solely on international mergers.

• Reducing the number of merger investigations.

• Allowing all mergers to proceed without scrutiny.

What is the significance of the Lockheed Martin and Aerojet Rocketdyne Holdings deal?

• It is a minor deal with no antitrust concerns.

• It is seen as a test for the administration's antitrust approach.

• It has been approved without any objections.

• It is unrelated to the defense sector.

Why has Raytheon Technologies objected to Lockheed Martin's proposed deal?

• It would place a major supplier under Lockheed's control.

• It would have no impact on Raytheon's operations.

• It would decrease Lockheed's market share.

• It would increase competition in the market.

What concern does Senator Warren have regarding the Lockheed Martin deal?

• It will have no impact on the defense sector.

• It will benefit the defense sector.

• It will harm the defense sector if approved.

• It will lead to more competition in the defense sector.