The EU Court of Justice clarifies that the suspension obligation only applies to actions of the merging parties which contribute to the change in control of the target undertaking (EY / KPMG)

On 31 May 2018, the EU’s Court of Justice (ECJ) gave judgment in the EY / KPMG case on whether the EU suspension obligation was violated when KPMG’s Danish unit terminated a material contract prior to receiving competition clearance for its merger with Ernst & Young (EY). The ECJ concluded that the measure did not constitute a partial implementation of the transaction and therefore did not infringe gun-jumping rules. The ECJ clarified that the suspension obligation only applies to actions of the merging parties which 'in whole or in part, in fact or in law, contribute to the change in control of the target undertaking'. The ECJ has thus rejected and cut back the much wider understanding of the suspension obligation advocated by the European Commission (the Commission), which acted

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Auteurs

  • Freshfields Bruckhaus Deringer (London)
  • Freshfields Bruckhaus Deringer (Brussels)
  • Freshfields Bruckhaus Deringer (Brussels)
  • Freshfields Bruckhaus Deringer (Brussels)

Citation

Alastair Chapman, Sascha Schubert, Thomas McGrath, Thomas Wessely, The EU Court of Justice clarifies that the suspension obligation only applies to actions of the merging parties which contribute to the change in control of the target undertaking (EY / KPMG), 31 mai 2018, e-Competitions May 2018, Art. N° 94236

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