Bill Overview
Title: Foreign Merger Subsidy Disclosure Act
Description: This bill requires entities to disclose in their premerger notification filings to federal antitrust regulators content regarding any economic support they received from a foreign state.
Sponsors: Sen. Cotton, Tom [R-AR]
Target Audience
Population: people involved in multinational corporate mergers
Estimated Size: 20000
- The bill targets entities involved in mergers, specifically those that receive foreign subsidies.
- This will primarily affect multinational corporations considering cross-border mergers and acquisitions.
- Entities operating internationally and receiving foreign state aid are directly impacted.
Reasoning
- The target population includes multinational corporations engaged in mergers and acquisitions (M&A) where foreign subsidies are present. As a result, individuals directly involved in or advising on such transactions will be impacted.
- The policy may have varying levels of impact based on the individual's role (e.g., corporate executives, legal advisors, acquisition analysts) and the extent of a company's involvement in foreign-funded mergers.
- Given the budget constraints, only key personnel and major corporations would be closely monitored and required to comply extensively, thus limiting reach to smaller entities primarily involved in local transactions.
Simulated Interviews
Corporate Lawyer (New York City, NY)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- I believe the disclosure requirements will add transparency, but it will increase our workload considerably.
- Most of our clients will need to revisit how they manage international transactions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 8 |
| Year 10 | 8 | 9 |
| Year 20 | 8 | 9 |
Chief Financial Officer (Chicago, IL)
Age: 38 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- The requirement will increase regulatory compliance costs for us.
- It's vital for fairness in competitive markets, but challenging for smaller entities.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Merger Analyst (San Francisco, CA)
Age: 32 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- I'm concerned this might deter some profitable foreign partnerships.
- It's crucial to balance security concerns and economic growth objectives.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 7 | 8 |
| Year 5 | 8 | 9 |
| Year 10 | 8 | 9 |
| Year 20 | 9 | 9 |
CEO (Dallas, TX)
Age: 55 | Gender: male
Wellbeing Before Policy: 9
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- I believe this bill helps enhance transparency.
- We might face increased scrutiny, but that's manageable considering the benefits.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 10 |
| Year 10 | 9 | 10 |
| Year 20 | 9 | 10 |
Regulatory Affairs Specialist (Atlanta, GA)
Age: 29 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- The policy will require updating compliance frameworks, which is resource-intensive.
- It could level the playing field by limiting undue advantages from foreign aids.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 8 |
| Year 5 | 7 | 9 |
| Year 10 | 8 | 9 |
| Year 20 | 8 | 9 |
Investment Banker (Boston, MA)
Age: 41 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- This is another layer of due diligence that will lengthen transaction cycles.
- Greater transparency might attract more ethical investors.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 8 | 9 |
| Year 5 | 8 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Public Policy Consultant (Los Angeles, CA)
Age: 48 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 3/20
Statement of Opinion:
- This could serve as a model for other countries to adopt similar measures.
- Implementation might be challenging, but the long-term economic stability is a plus.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 8 |
| Year 5 | 8 | 9 |
| Year 10 | 8 | 9 |
| Year 20 | 9 | 9 |
Economic Analyst (Seattle, WA)
Age: 52 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 5/20
Statement of Opinion:
- It seems like a required oversight that should have been in place earlier.
- We'll likely see shifts in who foreign states choose to subsidize.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 8 |
| Year 20 | 8 | 8 |
Corporate Strategy Manager (Miami, FL)
Age: 37 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 20.0 years
Commonness: 2/20
Statement of Opinion:
- The policy could mean reformulating some of our strategies on foreign partnerships.
- Increased demands for transparency might impact some deals negatively.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 7 | 9 |
| Year 5 | 8 | 9 |
| Year 10 | 9 | 10 |
| Year 20 | 9 | 10 |
Corporate Risk Officer (Houston, TX)
Age: 58 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- Risk assessment becomes more complex with added disclosure expectations.
- It promotes responsible merger practices which I support.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 8 |
| Year 5 | 7 | 8 |
| Year 10 | 8 | 9 |
| Year 20 | 8 | 9 |
Cost Estimates
Year 1: $8000000 (Low: $6000000, High: $10000000)
Year 2: $8200000 (Low: $6200000, High: $10200000)
Year 3: $8405000 (Low: $6300000, High: $10410000)
Year 5: $8800000 (Low: $6600000, High: $10800000)
Year 10: $9600000 (Low: $7200000, High: $11800000)
Year 100: $12000000 (Low: $9000000, High: $14000000)
Key Considerations
- Antitrust agencies should prepare for increased administrative workload and possibly more complex evaluations.
- The informal estimate on the number of affected entities is about 20,000, primarily large multinational corporations.
- The transparency provided by this policy could indirectly impact international relations and trade agreements.