Firms Gird for Merger Trouble

US regulators are putting the kibosh on more mergers under President Barack Obama, prompting many companies to structure their deals with stronger safeguards against the risk of antitrust challenges.

Companies that have ignored the trend say they have felt blindsided. Regulators have killed, litigated or demanded changes in 86% of the deals that raised antitrust concerns between the 2009 and 2012 fiscal years, according to a Wall Street Journal analysis. That's more than the roughly 70% of deals they red-flagged under Republican President George W. Bush. The Obama administration opposed AT&T’s proposed $39 billion takeover of T-Mobile USA in 2011; the companies ultimately withdrew the merger plan. The Justice Department and the Federal Trade Commission share responsibility for enforcing US antitrust laws. Both agencies have new antitrust heads this year, but experts expect them to continue the Obama administration's hard line on mergers.