More Regulation Ahead Of Us In Merger Control?

During the summer of 2013, the European Commission initiated a public debate whether the scope of the EU Merger Regulation should be broadened to cover the acquisition of non-controlling minority shareholdings. What can we expect?

Introduction

The EU merger control (EUMC) was set in place almost a quarter of a century ago. It is designed to allow the European Commission (EC) to prevent mergers with harmful effects on competition. Until now the EUMC is limited to the acquisition of control, which is typically a shareholding of 50% or more. Conversely, the acquisition of minority shareholdings requires approval only in exceptional circumstances, typically those in which additional rights are associated with the shareholding that allow the shareholders to co-determine strategic business decisions in the target (such as approval rights to the business or budget). "Pure" minority shareholdings are, in turn, below the radar of the EUMC.