Political and societal scepticism of consolidation, particularly in disputed cases, and of the market power of large companies, is growing.
Getting a deal done is no longer just a matter of a compelling financial rationale and sound legal strategy. Navigating multiple regulatory and political challenges can be crucial to obtaining regulatory approval while preserving the value of a transaction.
In today’s geopolitical world, foreign investments are scrutinized by governments keen to preserve “the public interest” – increasing the uncertainty of the outcome for companies.
And investigations into specific sectors can lead to major financial and reputational challenges for companies. Shareholders, employees, customers and politicians alike now question the practices of certain actors, driving political and regulatory scrutiny. The ‘case universe’ of potential stakeholders in a merger or investigation is now much larger than before.
Brunswick combines a full technical knowledge of the legal processes involved, long-time expertise in M&A, litigation and (geo)political situations, and a deep bench of experts hailing from antitrust and competition agencies, government and business.
On 6 February 2019, the European Commission prohibited the proposed Alstom-Siemens merger—a heavily-discussed decision that fueled a pre-existing debate on whether or not to reform EU competition rules. Since then, several submissions have been made by Governments, academics and practitioners on the merits of the existing system and the need for a thorough review of the rules.
By Philippe Blanchard
10 October 2019