Senator Elizabeth Warren (D-MA) and Congresswoman Alexandria Ocasio-Cortez (D-NY) today announced plans to introduce legislation designed to impose a moratorium on "risky" mergers and acquisitions during the COVID-19 pandemic.
The Pandemic Anti-Monopoly Act will be designed to thwart "giant corporations and private equity vultures who are just waiting for a chance to gobble up struggling small businesses and increase their power through predatory mergers," said Warren.
The politicos are disturbed about media reports that Rite Aid and other companies are looking to acquire smaller businesses to consolidate and cement their industry leadership positions.
The Act's ban would cover M/As by companies with more than $100M in revenues and exclusive patents that have an impact on the COVID-19 emergency.
The moratorium would remain in place until the Federal Trade Commission unanimously declares that small businesses, workers and consumers are no longer under financial duress.
The legislative details of the Act are under development.