Summit County, Colorado – Not too long ago, the Division of Justice (DOJ) issued a Civil Investigative Demand (CID) to the Nationwide Ski Areas Affiliation (NSAA) and RRC Associates. This authorized measure, much like a civil subpoena, seeks to assemble data in reference to the proposed acquisition of Arapahoe Basin by Alterra Mountain Firm. The DOJ employs this routine investigative software to guage potential aggressive impacts of mergers and acquisitions in particular areas.
As a part of the Federal Authorities’s inquiry referring to the acquisition of Arapahoe Basin by Alterra Mountain Firm, the Division of Justice has served NSAA and RRC Associates with a Civil Investigative Demand, which is akin to a civil subpoena. It is a routine investigative software utilized by the DOJ to gather data from varied sources to be able to research the proposed acquisition and to evaluate potential impacts to competitors within the area which will end result.
The information that the DOJ has commanded from NSAA and RRC consists of content material from every of the three annual surveys (Kottke, Demographic, and Financial Evaluation) for the 2018/2019 to 2023/2024 seasons. Now we have been profitable in working with the DOJ to slim their request to a scope that meets their wants however doesn’t overreach. The DOJ has agreed to cut back the scope of NSAA and RRC’s mixed productions to about half of the content material from every of the three surveys, and to cut back the geographic scope to simply the Rocky Mountain Area.
We’re writing to let you already know that the info you provided to NSAA and RRC in a number of of those research will probably be included in our manufacturing submittal to the DOJ. The information won’t be introduced in combination. The uncooked information recordsdata have been requested. At current, the manufacturing due date is June 26, 2024.
NSAA is set to keep up the strictest confidentiality in assembling the entire information for these research and to make sure that the data is used for the great of all of the membership. We’re assured that the Division of Justice is certain by statute to keep up the confidentiality of this information as nicely, they usually have additional represented to us that none of it ought to ever be disclosed in any public doc or discussion board.
— NSAA Letter to Choose Members
6/26/2024
Scope of the Knowledge Request
The DOJ’s demand focuses on information collected by NSAA and RRC Associates by three annual surveys—Kottke, Demographic, and Financial Evaluation—spanning from the 2018/2019 season to the 2023/2024 season. Initially, the scope of the request was intensive, however by profitable negotiations, it has been decreased to cowl roughly half of the content material from every survey, focusing solely on the Rocky Mountain Area.
Confidentiality and Use of Knowledge
NSAA is dedicated to sustaining the confidentiality of the info offered by its members. The DOJ, certain by statutory confidentiality obligations, has assured NSAA that the info won’t be disclosed in any public paperwork or boards. This confidentiality is important to make sure that delicate data is protected and used solely for assessing the aggressive panorama.
Potential Outcomes and Implications
The DOJ’s inquiry may have a number of outcomes:
- Approval of the Acquisition: If the DOJ finds that the acquisition doesn’t negatively influence competitors, the merger might proceed with out circumstances.
- Conditional Approval: The DOJ would possibly approve the acquisition however impose circumstances to mitigate any aggressive issues, comparable to divestitures or behavioral cures.
- Problem or Block the Acquisition: In a extra extreme state of affairs, the DOJ may problem or block the acquisition if it determines that the merger would considerably hurt competitors within the area.
The CID issued to NSAA and RRC Associates represents an important step within the DOJ’s analysis of Alterra Mountain Firm’s acquisition of Arapahoe Basin. By understanding the implications and sustaining transparency, NSAA goals to navigate this inquiry whereas safeguarding member information and supporting the broader pursuits of the ski business. We’ll proceed to maintain you knowledgeable as this course of unfolds.
