Journal of Competition Law and Economics Advance Access published online on March 20, 2008
Journal of Competition Law and Economics, doi:10.1093/joclec/nhn002
LESSONS FROM THE RECENT STOCK EXCHANGE MERGER ACTIVITY
Stock markets across the globe have been the subject of merger discussions following pressure to cut costs and become more competitive. Cross-border mergers trigger a series of different issues to be analyzed. From a transactional point of view, some of these aspects include the synergies that a merger creates, the complexities in achieving an optimal financial structure, protection of minority shareholders, etc. From a regulatory standpoint, there is an array of issues that should also be considered. This article provides an overview of competition issues affecting financial entities—because if there is a breach of competition laws the whole merger might not take place. This will be the pillar of our analysis in this paper.
* Principal Case Officer and Economic Advisor at the Office of Fair Trading (UK) and Visiting Lecturer at City University Law School (UK). E-mail: ioanniskokkoris{at}hotmail.com.
** Assistant Professor at the University of Warwick (UK). E-mail: R.Olivares-Caminal{at}warwick.ac.uk. The views expressed herein are only of the authors and in no way reflect the views of the Office of Fair Trading and the University of Warwick. This article draws from an article published by the authors: "Some Issues on Cross-Border Stock Exchange Mergers," 29 U.Pa.J.Int'l L. 455 (2007).