Clifford Chance

Delaware Chancery Court Upholds Invocation of MAC Out

8 October 2018

The Delaware Chancery Court ruled last week that the would-be acquirer of a publicly traded company had validly invoked a "MAC out" to terminate the merger agreement that otherwise required it to buy the target. The decision, in Akorn v. Fresenius, marks the first time the Chancery Court has upheld the exercise of a MAC out.

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