Public Interest Issues in Cross-Border Mergers

Abstract

Global developments in merger control have shown varied approaches across jurisdictions regarding public interest issues in cross-border mergers. In developed countries, the domestic impact of cross-border mergers are subjected to foreign investment laws administered by the state and competition laws administered by competition regulators. Recent decisions on cross-border mergers have highlighted the tension between public interest and competition considerations in merger control, in that a merger would be approved by the competition authorities, but overturned by the state. In contrast, in some developing countries, competition authorities only review cross-border mergers, with the state having no decision-making role in the process. The question remains as to which approach achieves optimal outcomes that foster competition and is also in the public interest in the domestic economies affected by cross-border mergers. This chapter undertakes a comparative analysis of cross-border mergers in selected countries to assess the approaches to evaluating public interest considerations.