Merger Review: How Much of Industry is Affected in an International Perspective?
The paper develops a methodological framework for quantifying the impact of merger control regulations. While most countries have different criteria in terms of sales, market shares or combinations of the above, and while listing an inventory of these criteria is easy, such an exercise does not provide an answer regarding their impact on the market for corporate control. A methodology is developed to compare empirically the percentage of firms affected in an industry in a country by the “clearing in advance” regulation. By comparing industries and countries, we are able to provide an indication of the impact of merger regulations for a large number of industries in Europe. As such we provide a first indication of the tightness of ex ante merger review.
Keywordsmerger control firm size distribution
JEL ClassificationsK21 L40
Unable to display preview. Download preview PDF.
- Barros, P.P., Clougherty, J. and Seldeslachts, J., Remedy for Now but Prevent for Tomorrow: The Deterence Effects of Merger Policy Tools. WZB mimeo, 2006.Google Scholar
- Brakman, S., Garretsen, H. and Van Marrewijk, C., Comparative Advantage, Cross Border Mergers and Merger Waves: International Economics Meets Industrial Organization. CESifo Forum 1/2006, pp. 22–26, 2006.Google Scholar
- Checchi, D., Navaretti, G. and Turrini, A., “Adjusting labour demand: Multinational versus national firms–A cross-European analysis,” The Journal of the European Economic Association, vol. 1 (2-3), 2003.Google Scholar
- Duso, T., Neven, D. and Röller, L., The Political Economy of European Merger Control: Evidence Using Stock Market Data. CEPR Discussion Papers 3880, 2003.Google Scholar
- Hinloopen, J. and Van Marrewijk, C., Comparative Advantage, the Rank-Size Rule and Zipf’s law. Tinbergen Institute Discussion Paper 2006-100/1, 2006.Google Scholar
- Katsoulacos, Y., “Rethinking merger control policy,” in E.U. Competition Law and Policy, Development & Priorities, Athens, pp. 29–44, 2002.Google Scholar
- Konkurrensverket, Fighting Cartels, Why and How?, Stockholm 2001.Google Scholar
- Merger Control, Merger Control in 47 Jurisdictions Worldwide, (www.global-competition.com) 2002.
- Office of Fair Trading, The development of targets for consumer savings arising from competition policy, (London), p. 166, 2002.Google Scholar
- PWC, A tax on mergers? Surveying the time and costs to business of multi-jurisdictional merger reviews. A study commissioned by the International Bar Association and the American Bar Association, 2003.Google Scholar
- Sutton J., Technology and Market Structure, p. 676. MIT: Cambridge, MA, 1998.Google Scholar
- Van Cayseele, P., Sabbatini, P.L. and Van Meerbeeck, W., “National competition policies, chap. 4,” in: Galli G. and J. Pelckmans (eds.), Regulatory Reform and Competitiveness in Europe, Horizontal Issues. Cheltenham and Northampton, MA, (Edward Elgar), p. 544, 2000.Google Scholar