Chapter 10: Common ownership and merger control enforcement

Common ownership fundamentally upsets the well-settled merger enforcement ecosystem. Not only it challenges basic principles informing merger policy such as the presumed profitability of mergers for the merging firms and the merger-specificity of potential efficiencies but also it works against impl...

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Autores principales: Azar, José, Tzanaki, Anna
Formato: Online
Lenguaje:inglés
Publicado: Edward Elgar Publishing 2023
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Acceso en línea:https://directory.doabooks.org/handle/20.500.12854/101255
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author Azar, José
Tzanaki, Anna
author_browse Azar, José
Tzanaki, Anna
author_facet Azar, José
Tzanaki, Anna
author_sort Azar, José
collection Directory of Open Access Books
description Common ownership fundamentally upsets the well-settled merger enforcement ecosystem. Not only it challenges basic principles informing merger policy such as the presumed profitability of mergers for the merging firms and the merger-specificity of potential efficiencies but also it works against implementing tools and presumptions in merger practice such as concentration indices for screening out unproblematic from potentially harmful mergers. The incremental effect of a merger taking place in an environment of common ownership may be either smaller or larger by comparison to a counterfactual with no common ownership. The sign and size of the merger effect will depend on the relative post-merger stakes of the common shareholders in the merging firms vis-à-vis any stakes in non-merging rivals in the same industry and on the specific financial structure of the merger deal. Accordingly, merger enforcement should shift towards more fact-specific analysis and antitrust authorities may want to consider developing guidelines.
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spelling doab-20.500.12854ir-1012552023-07-11T14:14:54Z Chapter 10: Common ownership and merger control enforcement Azar, José Tzanaki, Anna Common ownership, horizontal shareholding, merger control, antitrust, competition, institutional investors LNC Common ownership fundamentally upsets the well-settled merger enforcement ecosystem. Not only it challenges basic principles informing merger policy such as the presumed profitability of mergers for the merging firms and the merger-specificity of potential efficiencies but also it works against implementing tools and presumptions in merger practice such as concentration indices for screening out unproblematic from potentially harmful mergers. The incremental effect of a merger taking place in an environment of common ownership may be either smaller or larger by comparison to a counterfactual with no common ownership. The sign and size of the merger effect will depend on the relative post-merger stakes of the common shareholders in the merging firms vis-à-vis any stakes in non-merging rivals in the same industry and on the specific financial structure of the merger deal. Accordingly, merger enforcement should shift towards more fact-specific analysis and antitrust authorities may want to consider developing guidelines. Published 2023-07-11T14:14:52Z 2023-07-11T14:14:52Z 2022-08-16 chapter https://directory.doabooks.org/handle/20.500.12854/101255 eng image/jpeg Attribution-NonCommercial-NoDerivatives 4.0 International https://www.elgaronline.com/edcollchap-oa/book/9781789903799/book-part-9781789903799-20.xml Edward Elgar Publishing Edward Elgar Publishing https://doi.org/10.4337/9781789903799.00020 https://doi.org/10.4337/9781789903799.00020 01ceac28-75b4-492a-8eec-f9b98bc6b28c https://creativecommons.org/licenses/by-nc-nd/4.0/ Edward Elgar Publishing Cheltenham, UK open access
spellingShingle Common ownership, horizontal shareholding, merger control, antitrust, competition, institutional investors
LNC
Azar, José
Tzanaki, Anna
Chapter 10: Common ownership and merger control enforcement
title Chapter 10: Common ownership and merger control enforcement
title_full Chapter 10: Common ownership and merger control enforcement
title_fullStr Chapter 10: Common ownership and merger control enforcement
title_full_unstemmed Chapter 10: Common ownership and merger control enforcement
title_short Chapter 10: Common ownership and merger control enforcement
title_sort chapter 10 common ownership and merger control enforcement
topic Common ownership, horizontal shareholding, merger control, antitrust, competition, institutional investors
LNC
topic_facet Common ownership, horizontal shareholding, merger control, antitrust, competition, institutional investors
LNC
url https://directory.doabooks.org/handle/20.500.12854/101255
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