U.S. Rep. David Cicilline, D-R.I., the House antitrust chairman, is proposing a temporary ban on most mergers until the COVID-19 pandemic ends, according to Politico.
Mr. Cicilline's proposal would allow deals to move forward only if the company is in bankruptcy or about to fail. All other deals would be banned until the pandemic declaration is lifted in the U.S.
He is seeking to include the merger ban in the next stimulus deal, according to his prepared remarks for an event at the Open Markets Institute.
"As millions of businesses struggle to stay afloat, private equity firms and dominant corporations are positioned to swoop in for a buying spree," Cicilline's prepared remarks read, according to Politico. "This is not complicated. Our country can leave room for merger activity that is necessary to ensuring that distressed firms have a fresh start through the bankruptcy process or through necessary divestitures, while also ensuring that we do not undergo another period of rampant consolidation."
A widespread ban on mergers has never before been issued in the U.S., according to Politico. However, the federal government has imposed bans in specific sectors.