New merger thresholds come into force on 31 October 2014

October 2014

New merger thresholds (introduced by the Competition and Consumer Protection Act 2014) came into force on 31 October 2014.

From now on a merger will need to be notified if in the most recent financial year:

(i)                  the aggregate turnover in the State of the undertakings involved is not less than €50 million, and

(ii)                the turnover in the State of each of two or more undertakings involved is not less than €3 million.

This change is very significant, particularly for large companies with a turnover in the State of more than €47 million.  If such a company makes an acquisition of a business that has a turnover in the State of €3 million or more then the transaction must be notified to the new Commission (the Competition and Consumer Protection Commission or CCPC) established by the 2014 Act.

If you have an agreement that was entered into before 31 October 2014 and where the old thresholds for mandatory notification were not met, but the merger will only be put into effect after that date then the new thresholds apply and it will need to be notified to the CCPC.

If an agreement was entered into before 31 October 2014 and the old thresholds were met, but the merger is only to be put into effect after that date and the new thresholds are not met then the old Competition Authority has expressed the view that your transaction still needs to be notified.

For more information contact Mark Ryan, any member of our Corporate Department or your usual Whitney Moore contact.