What are merger remedies in competition law?
Definition.
Merger remedies are used by competition authorities to maintain or restore competition in the market, by resolving and preventing the harm to the competitive process that may result as a consequence of a merger..
What is a competitive merger?
A potential competition merger involves one competitor buying a company that is planning to enter its market to compete (or vice versa).
Such an acquisition could be harmful in two ways..
What is a merger between two competitors?
Horizontal Merger
A merger occurring between companies in the same industry.
Horizontal merger is a business consolidation that occurs between firms who operate in the same space, often as competitors offering the same good or service..
What is a merger in law?
In corporate law, a merger is the absorption of one corporation into another.
The surviving corporation acquires all the assets and liabilities of the corporation getting absorbed.
The joining of non-corporate entities such as associations may sometimes be called a merger as well..
What is an example of a competitive merger?
A horizontal merger is when competing companies merge—companies that sell the same products or services.
The T-Mobile and Sprint merger is an example of a horizontal merger.
Meanwhile, a vertical merger is a merger of companies with different products, such as the AT&T and Time Warner combination..
What is merger in competition law?
A merger occurs when one or more undertakings acquires direct or indirect control of one or more other undertakings.
The control acquired should be on a lasting basis.
Such acquisition of control may include through: – the acquisition of shares. – the acquisition of assets..
What is the legal process of merger?
SEBI also specifies the procedures for obtaining approval from the stock exchanges for mergers and acquisitions.
The companies involved in the M&A transaction must submit a draft scheme of the merger or acquisition to the stock exchanges for approval..
What reason is the good reasons for mergers?
Generally, a successful merger may result in economies of scale, access to new technologies, and even elimination of certain costs.
All these events may improve the cost structure of a company..
Why do firms merge with competitors?
Mergers are most commonly done to gain market share, reduce costs of operations, expand to new territories, unite common products, grow revenues, and increase profits—all of which should benefit the firms' shareholders..
- Horizontal Merger
A merger occurring between companies in the same industry.
Horizontal merger is a business consolidation that occurs between firms who operate in the same space, often as competitors offering the same good or service. - Mergers can bring about a number of benefits, including lower costs or increased innovation.
At the same time, some mergers harm competition, which in turn may lead to increased prices, reduced quality, or lower wages. - What does EU Merger mean? Legal combination of two or more undertakings, generally by way of acquisition.
A merger (also called concentration) is the legal combination of two or more undertakings, generally by way of acquisition.
