European Court of Justice Clarifies Rules on Gun-Jumping

19 June 2018
View Debevoise Update
Key takeaways:
  • Important judgment by the European Court clarifies the scope of what constitutes ‘gun-jumping’ in an M&A context.
  • Standstill obligation should be limited to actions that contribute to the acquirer taking control of the target.
  • However, judgment leaves scope for interpretation which allows the European Commission to limit changes to its current practice.
  • Competition authorities globally increasingly looking to prosecute procedural breaches, and violations have the potential for very significant fines.
  • Merging parties should stay vigilant about deal structuring and integration planning.