Wednesday, November 28, 2012
Posted by D. Daniel Sokol
Nicolas Harle, Boston Consulting Group, Philippe Ombregt, INSEAD and Karel Cool, INSEAD discuss Merger Control and Practice in the Bric Countries vs. The EU and the US: Review Thresholds.
ABSTRACT: In the past five years, each of the BRIC countries has revised its merger control policies and practice, changing the conditions for competing in these markets. In this article, we review the turnover (sales) and asset threshold levels in the BRIC countries vs. the EU and the US that impose a filing and review with the antitrust authorities of the proposed M&A transaction. While a common belief is that merger control thresholds are becoming more similar, our review indicates that thresholds remain very different among the BRIC countries as well as the EU and the US. This is the case for both “small” transactions that can be made without review, as well as the “large” transactions that may expect a review. Further, countries differ substantially in their requirement to review “foreign-to-foreign” transactions (those taking place completely outside the geographic boundaries of a regulatory regime) and whether the turnover and assets of the transacting firms are taken to assess the need for a review, or the turnover and assets of the group to which they belong. Tables provide the actual turnover and asset thresholds in the BRIC countries as well as the EU and the US.