MERGER FREEZE
A group of Democratic representatives sent a letter to House leadership on Tuesday pushing for a freeze on most mergers in the next coronavirus relief package.
Rep. David Cicilline (D-R.I.), chairman of the House Judiciary antitrust subcommittee, is leading the letter, which backers include Energy and Commerce consumer protection subcommittee chair Jan Schakowsky (D-Ill.), leadership member Rep. Jamie Raskin (D-Md.) and progressive lawmakers Reps. Alexandria Ocasio-Cortez (D-N.Y.), Pramil
“Powerful corporations and private equity firms are standing ready to exploit this crisis for unfair financial gain. We know that market consolidation produces higher prices and few choices for consumers, lower wages for workers, and contributes to grotesque levels of economic inequality,” Cicilline said in a statement.
“To protect American consumers and workers, the next COVID-19 relief package should include a merger moratorium for transactions that do not involve firms that are truly failing and have exhausted all other options or are in bankruptcy proceedings.”
The letter to House Speaker Nancy Pelosi (D-Calif.) and House Minority Leader Kevin McCarthy (R-Calif.) calls for an exception for mergers involving the purchase of a severely distressed company that would otherwise likely go bankrupt.
Cicilline first proposed a merger moratorium during the pandemic last month.
