The Turkish Competition Authority unconditionally clears the acquisition of a machine manufacturer’s process and motion control business by its parent company through a reverse Morris trust (Regal / Rexnord)

On 15 April 2021, the Competition Board (the Board) unconditionally approved [1] Regal Beloit Corporation's acquisition of sole control over Rexnord Corporation's process and motion control (PMC) business segment. Facts The transaction concerns an acquisition carried through reverse Morris trust (RMT), a method granting certain exemptions from US tax legislation provided that specific conditions are met. The parties submitted that the preference of an RMT transaction was absent of any other intention apart from having the advantage of being granted with certain exceptions and indicated that the RMT method was not pertinent to any criteria that should be considered as a basis while evaluating the transaction. The transaction was shaped around two separate procedures: the separation

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Authors

  • ELIG Gürkaynak Attorneys-at-Law (Istanbul)
  • ELIG Gürkaynak Attorneys-at-Law (Istanbul)
  • ELIG Gürkaynak Attorneys-at-Law (Istanbul)

Quotation

Gönenç Gürkaynak, Ebru Ince, Cigdem Gizem Okkaoglu, The Turkish Competition Authority unconditionally clears the acquisition of a machine manufacturer’s process and motion control business by its parent company through a reverse Morris trust (Regal / Rexnord), 15 April 2022, e-Competitions April 2022, Art. N° 106992

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