ARTICLES: PROCEDURE – MERGERS - TRANSACTION - FRENCH COMPETITION AUTHORITY - DEROGATIONS TO THE SUSPENSIVE EFFECT

Derogations to the suspensive effect of mergers control for firms in difficulty: The French Competition Authority’s practice

The procedure by which merging firms can request to be allowed to proceed with a transaction before the French Competition Authority clears the deal (i.e., derogations from the suspensive effect of merger control) is not well known even if the number of such requests is currently high due to the economic downturn. This paper provides statistics and explains the so-called “derogation” procedure in France. It also addresses issues concerning the impact of pre-clearance authorizations to merge on merger control.

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. 1. In France, as at the European level, merger control in France takes place ex ante and suspends mergers and acquisitions until they are authorised. This suspensive effect is an essential guarantee of the effectiveness of control. It is embodied in national law in the first paragraph of Article L. 430-4 of the French Commercial Code, which provides that "a concentration may only be effectively implemented after the approval of the Competition Authority" [1]. The suspensive effect is nevertheless subject to strict time limits so as not to excessively slow down mergers between undertakings [2]. 2. In some cases, however, legal deadlines are incompatible

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  • DG COMP (Brussels)

Quotation

Simon Genevaz, Derogations to the suspensive effect of mergers control for firms in difficulty: The French Competition Authority’s practice, February 2013, Concurrences N° 1-2013, Art. N° 50296, pp. 49-53

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