FTC Publishes Upward Adjustments of HSR and Related Thresholds for 2026

By: Steve Albertson

What You Need To Know

  • Parties contemplating mergers or acquisitions over the coming year should be prepared for higher Hart-Scott-Rodino Act filing thresholds, as well as higher filing fees.
  • In light of continued scrutiny of potential director interlocks, parties should also be aware of the updated safe harbor thresholds under Section 8 of the Clayton Act.
  • The changes, which will raise the minimum transaction value threshold from $126.4 million to $133.9 million, will likely become effective in the latter half of February.

On January 14, 2026, the Federal Trade Commission announced the 2026 annual statutory adjustments to the Hart-Scott-Rodino Act (HSR) thresholds. These thresholds govern which transactions are subject to the HSR Act’s notification and waiting period requirements prior to closing. The new figures will take effect 30 days after publication in the Federal Register, which typically occurs within one to two weeks of the announcement. This means the revised thresholds and fees will become effective in late February and will remain in effect until the 2027 updates are issued early next year. Transactions closing on or after the effective date are governed by the revised reportability thresholds, while transactions filing on or after the effective date must use the updated fees.

The Revised HSR Reportability Thresholds

The minimum deal value threshold for a notifiable transaction under the HSR Act has increased from $126.4 million to $133.9 million, approximately a 5.6% increase over the 2025 thresholds.

Size of Transaction Threshold: Under the revised thresholds, parties to a merger, consolidation, or acquisition of voting securities or substantial assets may need to file pre-acquisition notifications with the FTC and DOJ and observe the HSR waiting period if the transaction results in either of the following:

  • The acquiring person will hold more than $133.9 million worth of the acquired person’s voting securities and assets, and the parties satisfy the “size of person” criteria below, or
  • Regardless of the parties’ sizes, the acquiring person will hold more than $535.5 million worth of voting securities and assets of the acquired person (in which case, the size of person test is not applicable)

Basic Size of Person Test: One party must have at least $26.8 million or more in total assets or annual net sales, while the other party must have at least $267.8 million in total assets or annual net sales. (Assets are determined by the most recent regularly prepared balance sheet).

  • Non-Manufacturing Exception: For targets not engaged in manufacturing, the lower annual net revenue measurement set forth above is inapplicable. Such a target meets the size of person test only if it has $26.8 million in total assets, or $267.8 million or more in annual net sales.

The new minimum thresholds are detailed in the chart below:

Reportability Thresholds

2025 Threshold
(in millions)

2026 Threshold
(in millions)

Minimum Size Transaction

$126.4

$133.9

Size of Person (smaller person)

$25.3

$26.8

Size of Person (larger person)

$252.9

$267.8

Maximum Size of Transaction (the size of person test is not applicable to transactions exceeding this value)

$505.8

$535.5

New HSR Filing Fees

Amendments to the HSR Act require corresponding annual adjustments to filing fees based on overall transaction value. The current and new thresholds and fees are shown below:

2025 Filing Fee Threshold

2026 Filing Fee Threshold

Deal Value
(in millions)

Fee

Deal Value
(in millions)

Fee

Less than $179.4

$30,000

Less than $189.6

$35,000

Between $179.4 and $555.5

$105,000

Between $189.6 and $586.9

$110,000

Between $555.5 and $1,111

$265,000

Between $586.9 and $1,174

$275,000

Between $1,111 and $2,222

$425,000

Between $1,174 and $2,347

$440,000

Between $2,222 and $5,555

$850,000

Between $2,347 and $5,869

$875,000

$5,555 or over

$2,390,000

$5,869 or over

$2,460,000

The Revised Clayton Act Section 8 Thresholds

The FTC also published annual revisions to the interlocking directorate thresholds under Section 8 of the Clayton Act. This provision of the Clayton Act prohibits a “person” from serving as a director or officer of two competing corporations if each has capital, surplus, undivided profits of more than $54,402,000 (increased from $51,380,000) unless one of the following de minimis exemptions is met:

  • The competitive sales of either corporation are less than $5,440,200 (increased from $5,138,000)
  • The competitive sales of either corporation are less than 2% of its total sales
  • The competitive sales of each corporation are less than 4% of its total sales

The Clayton Act’s bar on interlocks is designed to prevent relationships between competitors that could reduce incentives to compete, or that could facilitate coordinated interaction or anticompetitive information flows between them. Enforcers in the Biden Administration significantly ramped up law enforcement scrutiny of potential interlocks, and this appears to be an area of continued enforcement priority under the Trump Administration.

Fenwick Law Clerk Vaibs Srikaran contributed to this alert.