Regulatory risk continues to be a ‘top of mind’ issue for global M&A deals. Two high profile reversals – the European Commission’s decision to block Hutchinson’s prospective combination of mobile telecom operators Three and O2, and Halliburton’s decision to pull out of its putative acquisition of Baker Hughes due to opposition from both EU and US antitrust regulators – has once more highlighted the importance of having an effective global merger control strategy.
BLP’s Antitrust & Competition team has published an article exploring these issues further in this month’s edition of Financier Worldwide - Business Resources 2016 - Mergers & Acquisitions.
The article (which requires free password access) highlights some of the key considerations that dealmakers should consider when structuring transactions and includes tips on how to make the merger process efficient and painless. We focus on the importance of understanding the impact that merger regulations can have, even where the merger may appear to be a ‘no-issues’ deal. Failure to fully understand these rules can result in a deal being blocked or unwound, fines for ‘gun-jumping’ or damage to the reputation of the company. With over 100 jurisdictions with active merger control regimes, the importance of managing the process effectively has never been greater.
For more information, please contact James Marshall or Sonja Hainsworth.