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Merger control information


Merger control refers to the procedure of reviewing mergers and acquisitions under antitrust / competition law. Over 130 nations worldwide have adopted a regime providing for merger control. National or supernational competition agencies such as the EU European Commission, the UK Competition and Markets Authority, or the US Department of Justice or Federal Trade Commission are normally entrusted with the role of reviewing mergers.

Merger control regimes are adopted to prevent anti-competitive consequences of concentrations (as mergers and acquisitions are also known). Accordingly, most merger control regimes normally provide for one of the following substantive tests:

  • Does the concentration significantly impede effective competition? (EU, Germany)
  • Does the concentration substantially lessen competition? (US, UK)
  • Does the concentration lead to the creation or strengthening of a dominant position? (Switzerland, Russia)

In practice most merger control regimes are based on very similar underlying principles. In simple terms, the creation of a dominant position would usually result in a substantial lessening of or significant impediment to effective competition.

The large majority of modern merger control regimes are of an ex-ante nature, i.e. the reviewing authorities carry out their assessment before the transaction is implemented.

While it is indisputable that a concentration may lead to a reduction in output and result in higher prices and thus in a welfare loss to consumers, the antitrust authority faces the challenge of applying various economic theories and rules in a legally binding procedure.

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Merger control

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European Union merger law

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possible that the transaction is not subject to merger control (because Company A had been deemed to already control Company B before the share purchase, under...

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decisions can be appealed to the Competition Appeal Tribunal (CAT). UK merger control is governed by the Enterprise Act 2002, as amended by the Enterprise...

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Johnson Controls

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was formed via the merger of American company Johnson Controls with Tyco International, announced on 25 January 2016. The merger led to the avoidance...

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Competition law

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position. Practices controlled in this way may include predatory pricing, tying, price gouging, and refusal to deal. supervising the mergers and acquisitions...

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European Union competition law

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firms' dominant market positions under article 102 TFEU. Mergers, control of proposed mergers, acquisitions and joint ventures involving companies that...

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Concentration of media ownership

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concept of media pluralism is broader as it touches many aspects, from merger control rules to editorial freedom, the status of public service broadcasters...

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merger terms, and signing a share exchange agreement. At the closing, the shell company issues a substantial majority of its shares and board control...

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Cartel

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forms of collusion or anti-competitive organization such as corporate mergers. The word cartel comes from the Italian word cartello, which means a "leaf...

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Finnish Competition and Consumer Authority

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of compliance with legislation regarding public procurement and the merger control. The new Act on Procurement and Concession Contracts (1397/2016) gave...

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Market power

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ability of firms to accrue market power. Such legislation often regulates mergers and sometimes introduces a judicial power to compel divestiture. Market...

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Clayton Antitrust Act of 1914

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their employers. The Sherman Act had also triggered the largest wave of mergers in US history, as businesses realized that instead of creating a cartel...

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New Brandeis movement

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scrutiny of mergers, including vertical mergers. Proponents believe antitrust laws should focus less on short-term price effects of mergers and more on...

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2019 merger of CBS and Viacom

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Merger guidelines

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Merger guidelines in the United States are a set of internal rules promulgated by the Antitrust Division of the Department of Justice (DOJ) in conjunction...

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the largest mergers and acquisitions by decade of transaction. Transaction values are given in the US dollar value for the year of the merger, adjusted...

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Competition and Markets Authority

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UK's competition watchdog". www.ft.com. Retrieved 22 December 2023. "Merger Control 2023 - UK | Global Practice Guides | Chambers and Partners". practiceguides...

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