Notification of Transnational Mergers
With the globalisation of markets has come a growing number of transnational mergers – mergers of firms operating in more than one country. Such transactions may be subject to the merger control laws of several countries, each of which may require notification to the national competition authority. A multiplicity of notifications, each of them different in some respects, imposes obvious burdens on the merging parties, and it may make co-operation among competition agencies investigating a single transaction more difficult, in situations where such co-operation would benefit all. The OECD’s Competition Law and Policy Committee undertook a study of this issue and issued the report set forth below. The report notes some of the more basic differences in national merger notification forms and the reasons for them. It concludes that harmonisation of notification forms could have long-run benefits for both the business community and national competition agencies. As an aid to that process, the report includes a “Framework for a Notification and Report Form for Concentrations,” which is a synthesis of common elements of national notification forms. The Framework could constitute the basis for an entire notification form, or alternatively, some of its specifications could be adopted on a piecemeal basis as appropriate in a given country. There are six parts to the Framework: identification of the merging parties; description of the merger transaction; description of the operations of the merging parties; identification and description of markets in which the transaction could have horizontal or vertical effects; specification of documents to be submitted; and voluntary waiver of confidentiality.
Page Count: 13
Document Type: Review Article
Publication date: September 1, 1999