DOJ allows Compass-Anywhere deal despite staff antitrust concerns

The Justice Department let the 30-day federal waiting period expire and Compass closed its acquisition of Anywhere Real Estate after shareholders approved the deal; antitrust staff had recommended a deeper investigation but senior officials did not pursue it.

Compass Inc. has closed its acquisition of Anywhere Real Estate after Justice Department leadership allowed the federal waiting period to expire despite antitrust staff concerns. Antitrust staff had recommended an in-depth investigation of the proposed combination of the two largest U.S. residential brokerages, according to people familiar with the matter. Shareholders approved the transaction and the companies announced the deal had closed. The merged firms will hold large market shares in several local markets. Key points: - The Justice Department allowed the 30-day waiting period to lapse, and the merger closed after shareholder approval, the article reports. - Antitrust division staff had recommended further scrutiny and a longer probe, but senior officials did not pursue a second request, according to people cited in the article. - The article mentions Compass hired lawyer Mike Davis, who argued the deal did not require extended antitrust review. - RealTrends data cited in the article show Anywhere had about $184 billion in 2024 sales and Compass about $231 billion in 2024 sales. - The combination yields dominant shares in some areas, including more than 80% of Manhattan residential sales by dollar volume, over 70% in Northern California, and more than 60% in the District of Columbia, per RealTrends. - State attorneys general are reported to be investigating and could still seek challenges to aspects of the deal, though those efforts can become harder after a merger closes. Summary: The DOJ leadership decision to allow the waiting period to expire enabled the Compass-Anywhere transaction to close without a lengthy federal antitrust inquiry, shortening the timeline for completion. State attorneys general remain active and could pursue challenges to parts of the deal, which would be the next major avenue for scrutiny. Lawmakers had also raised concerns about the combined market shares and potential effects on consumers.