Compass (COMP) and Anywhere Real Estate (HOUS) were able to avoid a review of their $1.6 billion merger after antitrust enforcers were overruled by senior Justice Department officials who believed the transaction should go through, The Wall Street Journal reported Friday, citing people familiar with the matter.

The companies closed the transaction on Friday, far earlier than the minimum 9-month timeline they expected when the merger was announced in September, the report said.

Gail Slater, head of DOJ antitrust division, wanted to carry out an extended review of the merger to determine if it was anticompetitive, but Compass appealed to the office of Deputy Attorney General Todd Blanche, who agreed that any concerns could be addressed without an investigation, according to sources.

Compass enlisted the Trump-aligned lawyer Mike Davis, to present its case to Blanche's office. "Davis has become a sought-after adviser to companies with deals facing government review," the Journal reported.

A spokeswoman for Blanche said the department "complied with its obligations" under antitrust law to review the deal, the WSJ reported.

Compass will control almost 20% of the country's home-sales volume after the deal, and in some metro areas like Chicago, New York and San Francisco, the combined company's market share would be more than 30%, according to the report.

Under government guidelines passed in 2023, mergers that give a company control over more than 30% of a market are presumed to be illegal, the Journal reported.

Compass and Anywhere Real Estate did not immediately respond to MT Newswires' requests for comments.

Shares of Compass rose 7.8% in recent Friday trading.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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