Competition Newsletter - June 2018

Gun jumping: The Court of Justice of the European Union states that the early implementation of operations incidental to a merger which do not themselves result in a lasting change in the control of a company is not punishable

In a decision dated May 31, 2018, the Court of Justice of the European Union (CJEU) ruled on whether the early termination of a cooperation agreement between KPMG DK and KPMG International, condition precedent of a merger intended between KPMG DK and EY, constituted "gun jumping", i.e. contrary to the obligation to suspend the completion of a merger until it has been authorized.

KPMG DK was bound to KPMG International by a cooperation agreement which allowed KPMG DK to be part of KPMG's global network. In November 2013, KPMG DK and EY entered into a merger agreement which notably provided as condition precedent the termination of the cooperation agreement between KPMG DK and KPMG International, which KPMG DK immediately implemented following