The Competition and Consumer Protection Commission (CCPC) has today published its annual statistics detailing the number of merger and acquisitions notified and assessed in 2019. All mergers and acquisitions which reach certain financial thresholds must be notified. The CCPC\u2019s role is to examine whether any potential transaction could result in the substantial lessening of competition in markets for goods and services in the State.<\/p>\n
2019 statistics <\/em><\/strong><\/p>\n On January 1 2019, the financial thresholds at which notification of a merger or acquisition to the CCPC is required were increased. This resulted in a reduction in the number of notifications of relatively small transactions in sectors such as motor fuel (retail\/wholesale) and groceries (retail\/wholesale). Previously these transactions would have been notified to the CCPC but were not likely to raise competition concerns.<\/p>\n Commenting on the publication of the 2019 statistics, Brian McHugh, Member of the Commission said: \u201c<\/em>2019 saw significant changes within the merger regime in Ireland as the implementation of the new higher merger financial thresholds resulted in a substantial reduction in the number of mergers notified. <\/em>The reduced number of notifications reflect the goal of removing transactions which are unlikely to raise competition concerns from mandatory notification. This reduces the regulatory burden on Irish businesses and allows the CCPC to focus resources on transactions which are more likely to raise competition issues.<\/em><\/p>\n Speaking about the year ahead, Brian McHugh said \u201cOne key element of a merger regime is the need to ensure efficiency. It is important that businesses have the confidence that notifications will be dealt with in a timely manner, in particular where no significant competition issues arise<\/em>.\u00a0 In this regard <\/em>we have announced our intention to introduce a simplified merger procedure (SMP) and we have completed our consultation on the implementation. It is intended that the SMP regime will commence by the end of Q1 2020. We expect that this change will deliver further efficiency benefits for businesses through a reduced notification burden and speedier decision timelines.<\/em><\/p>\n Under Irish competition law it is a criminal offence to implement a notifiable merger without first securing clearance from the CCPC.\u00a0 2019 also saw Ireland\u2019s first criminal prosecution involving \u201cgun-jumping\u201d in a merger. Following an investigation by the CCPC Armalou Holdings Limited and Airfield Villas Limited pleaded guilty in Dublin Metropolitan District Court to illegally putting into effect a business merger without first notifying the CCPC.<\/p>\n\n