Planning a merger? -A case study of the formal and informal decision making procedure in the European Union

Abstract

Today, globalisation drives companies to consolidate in order to remain competitive. This has resulted in an enormous amount of mergers within the European Union. To maintain a high level of competition, mergers need to be supervised by authorities. This study includes four merger cases, which have been subject of investigation by the European Authorities. This thesis provides a guide of how companies, intending to merge, should prepare an approach towards the European Union authorities. The study also explains the actual roles and power of the actors connected to the merger procedures. The information derived from interviews in this study is revealed from experienced practitioners within this area.

We have concluded that companies should begin preparing for approaching the EU Commission very early ahead of the merger procedures. The body within the EU Commission responsible for mergers is the Merger Task Force. Companies must submit substantial documentation for the process to run smoothly. For assistance, companies need specialist competition lawyers and economists. Equally important is an open and continuous dialogue between the top management and the Merger Task Force. Therefore, a mutual learning process should start promptly between the company and the Merger Task Force. The guidelines in this thesis help companies to avoid traps when intending a merger within the European Union.