2402007 Informal Interpretation

She inberg, Samuel I.
From: 	HSRHelp
Se nt: 	Fr id ay, February 9, 2024 11:4 8 AM
To: 	Wa lsh, Kathryn E. ; Berg, Ka ren E. ; Musick, Vessel ina; Sha ffer, Kristin; Sheinberg, Samuel I. ; Six, Anne;
Fetterman, Michelle; Burton, June; Larson, Peter
S ubj ect : 	FW : Question Regard ing Reportability of JV Dissolution
From: Whitehead, Nora <n wh itehead@ftc.go v>
Sent : Frida , Februa 	9, 2024 11 :47:50 AM UTC-05:00) Eastern Time ( US & Canada )
To:
Cc: 	e p < 	e p 	c.gov>
Subject: RE: Questi on Rega rding Reportability of JV Dissolution
Yes, Bhas a potent ia ll y reportable acquisition of assets here, if the re levant th reshol ds are met and no other exemptions
apply.
From : HSRHelp <HSRHe lp@ftc.go v>
Se nt : Thursda y, Feb r ua ry 8, 2024 10:25 PM
To: Walsh , Kathryn E. <kwalsh@ftc.gov>; Berg, Karen E. <KB ERG@ftc.gov>; Musi ck , Vesse li na <vmusick@ftc.gov>;
Shaffer, Kristin <kshaffer@ftc.gov>; She inberg, Samuel I. <SS HEINBERG@ftc.gov>; Six, Anne <asix@ftc.gov>; Wh itehead,
Nora <nw hitehead@ftc.gov>; Fetterman, M ichelle <mfette rman@ftc.gov>; Burton, June <jburton@ftc.gov>; Larson,
Peter <plarson@ftc.gov>
Subject : FW: Question Regarding Reportabilit y of JV Dissol ut ion
From:
Sent : 	(UTC-05:00) Eastern Time ( US & Canada )
To: HSRHe lp < HSRHelp@ftc.gov >
Cc:
Su
Dea r PNO :
Pa rt y A and Pa rt y Bare parties to a JV, w hich is structured and an LLC and in w hich Party A ow ns 60% of the non
corporate interests and Pa rt y B ow ns 40% of the non-corporate interests. Party A " contro ls" the non-corporate JV entity
for pu rposes of the HSR Act.
Pa rt y A and Pa rt y Bare seeking to " break up" the JV. As part of the " break up ," and consistent wi th Pa rt y A and Pa rty B' s
ownership/ economic interests in the JV, assets equaling 60% of the FMV of the JV' s assets will be distributed to Party A
and assets equa li ng 40% of the FMV of the JV will be distr ibuted to Party B. The JV entity will be dissolved fo llowing the
distribution. There will be no purchase pri ce or con si deration exchanged bet ween Party A and Pa rt y B relating to the
distri but ion of the JV' s assets or the di sso lution of the JV .
Assuming the value of the non-exempt assets being distributed out of the JV to Party Bexceeds the "size of t ransaction"
th reshold (and assuming the " size of person" test is met ), is th is a reportable acquisit ion of assets if it is part of a
di sso lution of an LLC?
Thanks v ery much,
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