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Ropes & Gray’s Global Head of M&A Discusses Megamergers and Carve-outs in Bloomberg BNA and International Financial Law Review

Practices: Antitrust, Mergers & Acquisitions, Health Care

A May 2 article published by Bloomberg BNA’s Health Care Daily Report discusses how a federal appeals court decision blocking the merger of insurance giants Anthem Inc. and Cigna Corp. highlights the difficulties faced by companies seeking to complete similar megamergers. A May 3 article in International Financial Law Review examines how shareholder activism is prompting a rise in carve-out transactions. Mergers & Acquisitions partner, and Global Head of M&A, Paul Scrivano is quoted in both pieces.

In Bloomberg BNA, Mr. Scrivano discusses the rejection of the Anthem-Cigna merger by a federal appeals court. Mr. Scrivano said there is still the potential for megadeals to be accomplished, given a potentially more agreeable Department of Justice antitrust enforcement division under President Donald Trump. However, potential merger partners shouldn't just assume a Republican administration will mean easy approval of their deals, Mr. Scrivano stated.

In International Financial Law Review, Mr. Scrivano outlines that the changing structures of carve-out transactions, which have become more complex, citing the value and critical nature of intellectual property (IP), which has changed enormously in recent years. Mr. Scrivano also states that one factor driving the rise in carve-out transactions is competition. “My sense is that we are also a seeing a lot of industry convergence these days, what used to be old-style industries are morphing,” Mr. Scrivano noted.

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