Chapter 1: Introduction
Globalization and the expansion of markets beyond geographic boundaries 'has generated an increase in international mergers as firms seek to strengthen their position for strategic advantage'. The widening of markets has also increased the potential for the effects of transnational mergers to extend beyond the physical location of the firms involved, thereby arousing the interests of multiple agencies. This, combined with the explosion of national merger regimes over the past two decades, means that more mergers are now being subjected to multiple filing requirements, with the result that parties and their advisers must navigate, at considerable time and expense, a maze of different substantive, analytical and procedural rules. Despite significant international effort toward identifying and promoting best practice and cooperation, the emergence of new and significant regimes, particularly in China, Brazil and India, has resulted in merger review processes for transnational mergers becoming more complex and less predictable. Although it is difficult to quantify precisely the cost attributable to the review of transnational mergers, that there is a significant cost to business is now widely acknowledged and has been the subject of detailed study. The increased costs associated with compliance are not restricted to the firms involved, but extend to regulators whose workloads and associated costs remain significant. These regulators are typically financed either by the parties making application, the taxpaying public or a combination of the two.