[Code of Federal Regulations]
[Title 16, Volume 1]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 16CFR802.30]

[Page 609]
 
                     TITLE 16--COMMERCIAL PRACTICES
 
                   CHAPTER I--FEDERAL TRADE COMMISSION
 
PART 802_EXEMPTION RULES--Table of Contents
 
Sec. 802.30  Intraperson transactions.

    An acquisition (other than the formation of a joint venture or other 
corporation the voting securities of which will be held by two or more 
persons) in which, by reason of holdings of voting securities, the 
acquiring and acquired persons are (or as a result of formation of a 
wholly owned entity will be) the same person, shall be exempt from the 
requirements of the act.

    Examples: 1. Corporation A merges its two wholly owned subsidiaries 
S1 and S2. The transaction is exempt under this section.
    2. Corporation B creates a new wholly owned subsidiary. The 
transaction is exempt under this section.
    3. Corporation A, which controls corporation B by a contract giving 
A the power to name a majority of B's directors, but which holds no 
voting securities of B, proposes to acquire 15 percent of B's voting 
securities. The transaction is not exempt under this section, since 
``A'' and ``B'' are not the same person ``by reason of holdings of 
voting securities.''
    4. Corporation A repurchases a portion of its voting securities in a 
series of transactions involving numerous sellers. All of these 
acquisitions are exempt under this section. The redemption or retirement 
of securities would likewise be exempt under this section.
    5. Corporations A and B (which are not included within the same 
person) form a new corporation, C. A and B will each hold C's voting 
securities upon formation. This section is inapplicable, and the 
acquisitions of C's voting securities by A and B are not exempt.