Botta, Marco --- "The Impact of Multi-Jurisdictional Concentrations on the New Competition Law Jurisdictions: A Case Study on Brazil" [2012] ELECD 835; in Whish, Richard; Townley, Christopher (eds), "New Competition Jurisdictions" (Edward Elgar Publishing, 2012)

Book Title: New Competition Jurisdictions

Editor(s): Whish, Richard; Townley, Christopher

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9780857939517

Section: Chapter 9

Section Title: The Impact of Multi-Jurisdictional Concentrations on the New Competition Law Jurisdictions: A Case Study on Brazil

Author(s): Botta, Marco

Number of pages: 29

Extract:

9. The impact of multi-jurisdictional
concentrations on the new
competition law jurisdictions: a case
study on Brazil
Marco Botta

1. INTRODUCTION

1.1 Cross-border Mergers and Acquisitions and the Growing Number of
Merger Control Jurisdictions

During the 1990s, as a consequence of the collapse of the barriers which
had split the world into two blocs during the Cold War, foreign direct
investments (FDI) from Western corporations in the emerging economies
increased greatly. According to a United Nations Conference on Trade
and Development (UNCTAD) study, in 1987 FDI in the emerging econo-
mies represented only 5 per cent of the world total of such investments,
whereas ten years later this percentage had increased to 19 per cent, and
today is even higher.1
Almost 80 per cent of FDI are conducted through mergers and acquisi-
tions (M&A), rather than via green-field investments.2 In a green-field
operation the foreign investor starts a new business activity in the recipient
country, yet in the case of M&A the foreign investor acquires control of a
local company. Joint ventures between a foreign investor and a local partner
for the production of certain kinds of services/goods, or for their distribution
in the recipient country, fall within the category of M&A.3


1 UNCTAD, `World Investment Report 2000: Cross-border Mergers and

Acquisitions and Development', New York, July 2001, xxii, available at: http://
www.unctad.org/Templates/WebFlyer.asp?intItemID=2435&lang=1 (accessed 18
July 2011).
2 ...