International Merger Policy

International Merger Policy

Applying Domestic Law to International Markets

Julie Clarke

International Merger Policy offers a compelling comparative assessment of domestic and regional merger laws and procedures. Identifying important areas of convergence and emerging best practice, it considers existing levels of international cooperation and identifies the key costs associated with transnational merger review before evaluating possible mechanisms by which they might be reduced.

Chapter 5: Merger remedies

Julie Clarke

Subjects: economics and finance, money and banking, law - academic, competition and antitrust law

Extract

Most merger regimes, by requiring or facilitating advance regulatory scrutiny, provide an opportunity for parties and regulators to negotiate modifications to proposed mergers designed to alleviate any identified competition concerns. This opportunity to negotiate with the regulator prior to consummation of a merger can help to avoid costly litigation for parties and regulators and may result in a higher welfare outcome by conditionally permitting a largely efficient merger that might otherwise have been prohibited. As a result, merger remedies have been appropriately described as 'one of the most important tools with which to align or realign the conduct of firms in terms of acceptable competition law principles'. A consideration of merger remedies is, therefore, important, both because of their potential to maximize welfare outcomes, particularly for global mergers and because of the fact that, in most jurisdictions, mergers are approved with conditions (remedies) far more frequently than they are prohibited outright. For example, in the EU mergers are conditionally cleared approximately ten times more frequently than they are blocked. Similarly, in China, which now represents a vital clearance jurisdiction for most global transactions, MOFCOM imposed merger remedies in 16 cases between 2008-2012, while blocking only one merger outright. Although a detailed consideration of particular types of remedies appropriate for different transactions is beyond the scope of this study, this chapter considers the role of merger remedies, the broad types of remedies imposed and the approach taken to remedies where mergers are multijurisdictional in scope.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information