Staying Compliant With Competition Law For M&A

M&A transactions typically involve information exchanges between parties prior to completion including for due diligence, merger control notifications, the satisfaction of interim covenants, and integration planning. All such information exchanges must be carried out in compliance with the Competition Act, 2002.

Applicable law

Competition law prescribes certain restrictions for pre-completion information sharing between transacting parties. However, it is generally recognized that these restrictions need to be balanced against the need for parties to assess and preserve the value of the relevant businesses prior to, and during the course of, an M&A transaction.

As a starting point, not all information exchange is prohibited. Only the exchange of competitively sensitive information (CSI) among competitors (or otherwise related businesses) raises competition concerns. In general, CSI is strategic information, the disclosure of which could reduce rivalry and