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Companies Act 2006, Parts 26 (ss.895–901) and Part 27 (special rules for public companies), on arrangements, reconstructions, mergers (or amalgamations) or divisions (demerger or "scission"). The rules here implement the Third and Sixth EC Company law directives.
In the United States, for example, the Clayton Act outlaws any merger or acquisition that may "substantially lessen competition" or "tend to create a monopoly", and the Hart–Scott–Rodino Act requires notifying the U.S. Department of Justice's Antitrust Division and the Federal Trade Commission about any merger or acquisition over a certain ...
A demerger is a form of corporate restructuring in which the entity's business operations are segregated into one or more components. [1] It is the converse of a merger or acquisition . A demerger can take place through a spin-off by distributed or transferring the shares in a subsidiary holding the business to company shareholders carrying out ...
The majority shareholders incorporate a second corporation, which initiates a merger with the original corporation. The shareholders using this technique are then in a position to dictate the plan of merger. They force the minority stockholders in the original corporation to accept a cash payment for their shares, effectively "freezing them out ...
In mergers and acquisitions, a mandatory offer, also called a mandatory bid in some jurisdictions, is an offer made by one company (the "acquiring company" or "bidder") to purchase some or all outstanding shares of another company (the "target"), as required by securities laws and regulations or stock exchange rules governing corporate takeovers.
The Enterprise Act 2002 (c. 40) is an act of the Parliament of the United Kingdom which made major changes to UK competition law with respect to mergers and also changed the law governing insolvency bankruptcy. It made cartels illegal with a maximum prison sentence of 5 years and states that level of competition in a market should be the basis ...
In general, vertical merger concerns are likely to arise only if market power already exists in one or more markets along the supply chain. [13] Conglomerate mergers involve firms that operate in different product markets, without a vertical relationship. They may be product extension mergers, i.e., mergers between firms that produce different ...
It was argued that focusing on a "substantial lessening of competition" as opposed to market dominance might "obstruct mergers unnecessarily", [39] restrict the capacity of Australian companies to "compete effectively in the global marketplace" [39] and that an intrusive merger policy might "hamper the growth of national industry". [40]