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Book Title: European Merger Control
Editor(s): IIzkovitz, Fabienne; Meiklejohn, Roderick
Publisher: Edward Elgar Publishing
ISBN (hard cover): 9781845424916
Section: Chapter 5
Section Title: Efficiencies in Merger Control
Author(s): Motis, Jrissy; Neven, Damien; Seabright, Paul
Number of pages: 16
Extract:
5. Efficiencies in merger control
Jrissy Motis, Damien Neven and Paul Seabright
In a lecture in the Beesley series, Paul Seabright observed, on the occasion
of the tenth anniversary of EU merger control, that little was known about
the source of efficiencies in mergers (Seabright 2002). In that lecture, he also
put forward a simple framework for consideration on the motivation
behind mergers, as a particular form of corporate restructuring, and the
source of synergies between merging partners. In this chapter, we report on
some of the work that we have undertaken on synergies and the source of
efficiencies in mergers. We outline the framework that we have developed
for thinking about mergers, summarize some of the empirical evidence that
we have gathered and discuss the insights that the framework yields into the
role of competition authorities. This work provides some confirmation that
the reallocation of intangible assets is a significant motivation for mergers
and a source of merger-specific efficiencies. With respect to the role of com-
petition authorities, we will suggest that they should systematically ask
about the activities that can only be undertaken through the proposed
merger and seek evidence from the merging parties about the plans that
they have developed to integrate their activities. We will also suggest that
synergies are of particular importance compared to technical efficiencies
because the latter are, in principle, achievable by means other than a merger
and, if in practice they are not likely to be achieved otherwise, this will tend
...
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URL: http://www.austlii.edu.au/au/journals/ELECD/2006/91.html