Focus on
Mergers

Gaining approval for mergers with minimal disruption and divestments.

Mergers and acquisitions are an important part of the market economy. They often create efficiencies, allow companies to enter new markets, and benefit consumers. But if a merger threatens healthy competition in the market, authorities become concerned.

Economics has a clear role to play in mergers, providing a solid framework of analysis for real world business.

Oxera works in close collaboration with companies seeking approval with minimal disruption and the fewest concessions. We also work with competition authorities to understand the impacts of a merger on the wider sector.

Pascale Déchamps

‘We provide our clients with peace of mind.’

In this Q&A, Oxera economic experts discuss the success stories and key issues our clients face in mergers

Click here to read the article.

The skills we apply to mergers
Which markets do the merging parties operate in? How closely do the merging parties compete with each other? Does the merger result in a lessening of competition? Are there merger efficiencies?

Mergers Skills

Theory
With an excellent knowledge of how firms interact, we are on top of all the economic theories around why mergers can be good for consumers and why they can be harmful. These theories are grounded specifically in game theory, industrial organisation, bargaining theory, microeconomics and behavioural economics.

Legal
We have complete understanding of relevant applicable law and case law—we operate in the real world and are aware of constantly updating precedents and legal constraints.

Management and communications
Applying the best of our management and communications skills, we’re committed to meeting tough deadlines, effective project and people management and interpersonal skills, whether these involve convincing CEOs of our arguments or convincing operational staff that we’re really there to help, not hinder.

Data-handling
Mergers involve a lot of data processing, requiring exceptional quantitative skills. Some of it is simply formal (creating tables of market shares) and some requires state-of-the-art econometric analysis. We often have to compile extensive data to get the deal through and usually find ways to make this knowledge useful to the progress of the business beyond the merger itself.

Our working process
We take a two–stage process to mergers

Mergers Stages

Stage 1

Preparation
  • Provide pre-filing, pre-merger advice, forming a preliminary assessment with the positives and negatives, strengths and weaknesses of the merger.
  • Help clients with strategic advice to understand which potential pitfalls may prevent clearance from the authorities.
  • Prepare the client with an understanding of their team and time commitments to the process.

 

Stage 2

If the merger proceeds
  • We act as the intermediary between the authorities and the business alongside the lawyers. We engage with the case team at the authority and provide supporting economic evidence.
  • Translating what the form is asking into plain English so the client understands what is required.
  • Filing the EU merger application form with the competition authorities to the highest standard.
  • Providing continuous support throughout, with the aim of clearance without concessions.