Monster Moves Closer to Buying Bang Energy After FTC Ends Review
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2023-07-04 04:29
Monster Beverage Corp. is moving forward with its $362 million acquisition of its bankrupt rival Bang Energy after

Monster Beverage Corp. is moving forward with its $362 million acquisition of its bankrupt rival Bang Energy after a federal antitrust regulator ended its review that could have quashed the proposed deal.

The US Federal Trade Commission informed Monster and Bang’s parent Vital Pharmaceuticals Inc. that it’s granting early termination of its merger review process, according to a spokesperson for Monster.

A spokesperson for the FTC declined to comment.

The deal is subject to certain closing conditions, including approval of the Florida bankruptcy judge overseeing Bang’s Chapter 11 case, Monster said in a statement earlier on Monday. If completed as intended, it would mark an unexpected end to Bang’s bankruptcy.

Bang had filed for bankruptcy last October, months after a California jury awarded Monster $293 million against the energy-drink maker and its founder and former Chief Executive Officer Jack Owoc in a false advertising case. Earlier this year, the energy-drink maker fired Owoc, who has publicly criticized how advisers are handling the Chapter 11 case and has fought the company over use of his social media accounts.

Read More: Bang Billionaire’s Caffeine Empire Crashes Into Bankruptcy

FTC’s Process

Lawyers representing Bang told Judge Peter Russin last week that the FTC’s review process could derail the transaction and force the business to shut down, potentially resulting in the loss of about 700 jobs.

Bang said during a court hearing that the FTC was evaluating whether the so-called failing firm defense applies to the transaction because it would be forced to liquidate if the Monster deal falls through.

The proposed transaction is contingent upon the companies getting court approval of the settlement of Monster’s false advertising suit against Bang over its “super creatine” branding on some of its products and related litigation.

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