KKR & Co. Inc., a major investment firm, is embroiled in a legal confrontation with the U.S. Department of Justice (DOJ) and the Federal Trade Commission (FTC) over allegations of antitrust violations. On Monday, KKR filed a lawsuit in the District of Columbia against DOJ officials and the FTC, challenging the enforcement actions related to the firm's compliance with premerger notification requirements under the Hart-Scott-Rodino Act (HSR Act) for transactions in 2021 and 2022.
KKR's complaint asserts that their filings were accurate and complete, disputing claims of intentional wrongdoing in their HSR Act submissions. The firm is seeking declaratory judgments to affirm their compliance with the law, argue that the government's interpretations of the HSR Act are unconstitutionally vague, and contest the excessive fines proposed by the DOJ as unconstitutional.
On the same day, the DOJ filed its own lawsuit in the Southern District of New York against KKR and associated entities, alleging that they failed to comply with the HSR Act's notification and waiting period requirements. The DOJ is seeking civil penalties and equitable relief, including the prevention of future violations.
KKR issued a statement emphasizing their cooperation with the Antitrust Division and their belief that any filing errors were inadvertent, not deliberate attempts to bypass antitrust scrutiny. The company maintains a strong financial position with a healthy current ratio of 1.69 and an overall GOOD financial health score according to InvestingPro's comprehensive analysis.
The firm expressed concern over what they perceive as government overreach and a politicized application of antitrust laws. KKR, which has been managed by its founders for 50 years, expressed a preference for resolving disputes factually rather than politically.
The legal proceedings are unfolding, and KKR has stated its intention to vigorously defend against the DOJ's allegations. Despite the regulatory challenges, the company has demonstrated strong market performance, delivering a 73.78% return over the past year.
In other recent news, Grenergy Renovables has sold phases 1, 2, and 3 of the Atacama solar plus batteries project to ContourGlobal for USD 962 million, a move expected to strengthen the company's financials. The company anticipates a capital gain of approximately €100 million in 2024 and an additional €200 million in 2025. RBC analyst Fernando Garcia stated that this divestment is the largest solar plus batteries transaction globally.
On the other hand, global investment firm KKR has promoted 41 individuals to the role of Managing Director, underscoring its commitment to recognizing professional achievements. Additionally, KKR and Energy Capital Partners (WA:CPAP) have formed a $50 billion strategic partnership to support the rapidly expanding artificial intelligence and cloud computing sectors. The firm reported a strong third quarter with record fee-related earnings surpassing $1 billion, a 32% increase from the previous quarter.
Evercore ISI recently upgraded KKR's price target, reflecting confidence in the firm's growth prospects. The new price target was set at $158.00, up from the previous $145.00. This decision was influenced by robust investment performance, an increase in unrealized carry and embedded balance sheet gains, and strong fundraising activities.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.