Written by Simon Harms | Stephen C. Tupper
As many businesses will be acutely aware, the preparation of merger control notifications to the European Commission (the “Commission“) under the EU Merger Regulation (the “EUMR“) in respect of M&A transactions requires a considerable amount of effort by in-house teams and external legal and economic advisers and results in significant costs in terms of professional fees and management time.
As detailed below, the Commission is currently proposing small but significant changes to its notification rules to ensure that these financial and administrative burdens are only imposed when absolutely necessary.
By way of background, the EUMR uses monetary turnover thresholds to determine whether a notification must be made in respect of an M&A transaction. While this provides parties with a great deal of certainty regarding the need to make a filing, it also means that the rules catch transactions which could not, by any stretch of the imagination, have a real impact on competition (e.g. acquisitions by parties which have no, or minimal, overlapping operations with their targets).
Continue Reading EU merger control: reform with a small ‘r’ (but do not underestimate its value)