A typical consent decree for firms involved in a merger requires the merging parties to divest overlapping businesses or to restrict anticompetitive practices.

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This statement is true. A consent decree is a legal agreement between the merging parties and a regulatory agency, such as the Federal Trade Commission (FTC) or Department of Justice (DOJ), that outlines the terms and conditions for approving a merger. One common requirement in a consent decree is for the merging parties to divest overlapping businesses to prevent creating a monopoly or to restrict anticompetitive practices that could harm consumers.

A Typical Consent Decree for Firms Involved in a Merger