Casting a Wider Net – EU Merger Control Review of Minority Shareholding Acquisitions?

11 November 2013
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  • The European Commission is considering amending the EU Merger Regulation to allow it also to review certain acquisitions of non-controlling minority shareholdings.
  • The Commission is proposing either to extend the current system of mandatory notification to all structural links where the parties meet the jurisdictional thresholds or, alternatively, some form of discretionary review model.
  • The proposed reform could have a significant impact on many corporate transactions and make minority shareholdings a less attractive investment option. At the least, the Commission’s proposals could increase legal uncertainty and transaction costs and complexity.
  • These and other concerns have been raised in a recently completed consultation process.