Purchase Agreement: Limits on Potential Divestitures | Practical Law
https://content.next.westlaw.com/practical-law/document/Id1691ed4ef2911e28578f7ccc38dcbee/Purchase-Agreement-Limits-on-Potential-Divestitures?viewType=FullText&transitionType=Default&contextData=(sc.Default)A Standard Clause that may be used in a purchase or merger agreement when a buyer wishes to limit its obligation to make divestitures in a transaction that may be subject to an enforcement action by an antitrust regulator. This Standard Clause discusses different types of divestiture limitations, such as where a buyer agrees to divest only those assets generating up to a certain amount of revenue, known as a divestiture cap, or agrees only to divest specified assets, assets that would not cause a material adverse effect, or those it considers non-material. This Standard Clause has integrated drafting notes with important explanations and drafting and negotiating tips.
A Standard Clause that may be used in a purchase or merger agreement when a buyer wishes to limit its obligation to make divestitures in a transaction that may be subject to an enforcement action by an antitrust regulator. This Standard Clause discusses different types of divestiture limitations, such as where a buyer agrees to divest only those assets generating up to a certain amount of revenue, known as a divestiture cap, or agrees only to divest specified assets, assets that would not cause a material adverse effect, or those it considers non-material. This Standard Clause has integrated drafting notes with important explanations and drafting and negotiating tips.