- 19th June 2019
- Posted by: Elaine McGrath
- Category: Commercial Law, Corporate Transactions
Merger Control Changes
Currently, where the parties to a merger exceed certain turnover thresholds, this triggers a mandatory requirement to seek clearance from the Competition and Consumer Protection Commission (‘CCPC’).
As 1 January 2019, subject to confirmation by the Irish Parliament which is expected, it is proposed to increase the current thresholds.
Under the new proposal, a notification must be made to the CCPC, in respect of a Merger or Acquisition, if, in the most recent financial year:-
- the aggregate turnover in the State of the undertakings involved is not less than €60,000,000 (increased from €50,000,000), and
- the turnover in the State of each of two or more of the undertakings involved is not less than €10,000,000 (increased from €3,000,000).
It is expected that this change will significantly reduce the number of transactions that require notification and thus what in many cases was an undue burden in respect of relatively minor transactions which did not give rise to competition law issues in Ireland.
The rules around notification requirements will not otherwise be changed and you can find out more information about those rules from a previous article which can be found here.