StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Critically assess the working of the EU's merger control Regulation - Essay Example

Cite this document
Summary
The scope of the essay is to provide a critical review on the EU competition regulation. The essay is organized in several sections. First the impact of M&A on the society as a whole is investigated followed by an overview of EU competition law with the EU merger procedures ending with a conclusion and discussion on the findings. …
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER98.7% of users find it useful
Critically assess the working of the EUs merger control Regulation
Read Text Preview

Extract of sample "Critically assess the working of the EU's merger control Regulation"

Download file to see previous pages

For the past two decades, mergers and acquisitions (M&As) hold the greatest percentage among modes of entry by foreign investors and growth activities of domestic companies; particularly true for the developed economies. One probable reason for this trend may be the high availability of information regarding the value of mergers and acquisitions. M&As targets usually obtain good values by the financial markets, which is more attractive and tempting for the investing companies and is considered one of the more important factors that affect investors’ choices.

Mergers occur when two or more companies, with the consent of both parties involved, engage into a merge, in order to create business synergies from the new single entity formed, rather than existing separately on the market. There is a mutual agreement between the managements of two or more companies, on the grounds of exchanging shares of the merging firms with shares of the new entity, which reflects the name of the both companies engaged in the merger. Acquisitions, on the other side, represent business transactions between parties which are unrelated, under terms established by the market, while each side acts in its own best interest .

In other words, in the case of acquisitions, the takeover involves a direct business transaction between the management of the acquiring firm and the stockholders of the acquired firm . 4. M&A result in anti-competitive effects as a possible consequence. By creating or strengthening dominant market power and by creating control over the industry’s vertical chain – M&A can succeed in distorting market competition. The scope of the essay is to provide a critical review on the EU competition regulation5.

At the level of EU, the European Commission is responsible for the implementation of the regulation. Its powers have still not been used as frequently as the USA. As designed currently the EU regulation and decisions have multiple variations across multiple sectors; particularly the sectors where large companies and extensive cross-border trading and ownership links are predominant. These are counted as the regulation’s key targets6. In the process the essay will look at the most important factor after the anti-competitive issues drive the EU decisions on M&A – the efficiency gains7.

The essay is organized in several sections. First the impact of M&A on the society as a whole is investigated followed by an overview of EU competition law with the EU merger procedures ending with a conclusion and discussion on the findings. 2. MERGERS AND AQUISITIONS AND THE ECONOMIC AND PUBLIC INTEREST (anti-competitive effects and efficiency gains) Although more than 14 drivers of M&As activity have been recognized and defined in the economic research and theory, according to Griffiths and Wall, in most of the cases the theories are highly unpredictable and inconsistent8.

For example, the value discrepancy theory (i.e. buying off a company with a lower value than its genuine potential and actual assets involved), as well as the market power theory (i.e. consolidation due to large market power), are both behavioral models and illustrate specific and exact frameworks in which the companies operate (externally and/or internally). Generalization of these theories is difficult, therefore one may argue that Griffiths and

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Critically assess the working of the EU's merger control Regulation Essay”, n.d.)
Retrieved de https://studentshare.org/law/1390701-critically-assess-the-working-of-the-eu-s-merger
(Critically Assess the Working of the EU'S Merger Control Regulation Essay)
https://studentshare.org/law/1390701-critically-assess-the-working-of-the-eu-s-merger.
“Critically Assess the Working of the EU'S Merger Control Regulation Essay”, n.d. https://studentshare.org/law/1390701-critically-assess-the-working-of-the-eu-s-merger.
  • Cited: 0 times

CHECK THESE SAMPLES OF Critically assess the working of the EU's merger control Regulation

Development of Legal Protection in EU Courts

In the European Union judicial system, given the democratic deficit as well as the restricted supervisory functions of the European Parliament, it is of the essence that a system be created to control the actions, decisions or privileges enjoyed by the European Union institutions.... In addition, the paper underscores the uncertainties of eu's judicial protection given the strict approach the European Union Court of Justice interprets Locus standing of the non-privileged applicants....
18 Pages (4500 words) Dissertation

The Impact of the EU Membership on Estonia

Name Subject Date Outline Introduction………………………………………………………………………………….... ... Trade and FDI (intra EU and Extra EU) Trade………………………………………………………………………………….... Estonia's position in the world………………………………………………………....
33 Pages (8250 words) Essay

Why Did the EU and the US Engage in an Eight-Year Dispute over the Banana Trade

hellip; The implication, therefore, is that the eu's imposition of protectionist agricultural policies should not have aroused retaliatory trade policies on the American side because it is not relevant to either their economy or their labour market.... (Dole) operate mostly in Central and Latin American countries that were disadvantaged by the eu's banana import system.... It took almost eight years for the dispute over the eu's single banana market regime, generally referred to as the Common Market Organization (CMO) for bananas to be finally resolved in April 2001....
11 Pages (2750 words) Essay

Communication in media

regulation is required to also ensure that there is no chaos in the wireless world.... This necessitates regulation.... History of regulation in UK and Europe3.... Early Regulations on MediaMedia regulation in UK started in the form of a Press Complaints Commission, which was an independent body that was working on the various complaints and issues that came about the press reports, and accuracy of the information or the personal infringement it caused....
12 Pages (3000 words) Essay

Fordism and the US Economy

The impact of Fordism in the US economy, society and culture is massive.... Spanning for more than half a century, the Fordism era has abetted the advancement of the American mode of production which shifted from agricultural to a more efficient highly-technical industrial production.... hellip; In its peak of popularity, Fordism proliferated across the globe and helped spur the economies of various countries in Europe and Asia....
10 Pages (2500 words) Essay

The Fragmentation of the Single Monetary Union

Indeed, Artis & Nixon suggest that the eu's economic objectives in the last decade have reached crisis point on grounds of the bicycle theory paradigm, where there is a “slowing of momentum precedes collapse, or in this case crisis” (Artis & Nixon, 2007, p.... The free movement of goods is a fundamental cornerstone of the EU defined under the Treaty of Amsterdam as an important pillar of the internal market in Article 14 (www....
16 Pages (4000 words) Essay

International Competition Law and Practice

It analyses both laws in detail and compares them with each other.... Further it highlights some key issues that international competition… The key feature of this paper is the practice of restricting competition in modern markets.... Competition is a very important constituent of a market....
17 Pages (4250 words) Essay

Development of International Economic Organizations

The paper “Development of International Economic Organizations” narrates about the evolving of global cooperation since the Great Depression.... The author itemizes about creating of Organization for European Economic Cooperation, European Economic Community, European Free Trade, and European Union....
20 Pages (5000 words) Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us