It is expected that turnover thresholds which determine whether mergers and acquisitions are required to be notified to the Competition and Consumer Protection Commission in Ireland ("CCPC") will increase in line with the table below with effect from 1 January 2019.
|Current Threshold||Threshold – 1 January 2019|
|The aggregate turnover in the State of the undertakings involved in the proposed merger or acquisition in the most recent financial year is not less than:||€50m||€60m|
|The individual turnover in the State of each of the undertakings involved in the proposed merger or acquisition in the most recent financial year is not less than:||€3m||€10m|
The Ministerial order affecting this change was laid before the Houses of the Oireachtas earlier this month but it requires a confirming resolution from both Houses before it is implemented. This is expected to be completed in the coming weeks.
These increases follow a public consultation on the merger provisions of the Competition Act 2002-2017 by the Department of Business, Enterprise and Innovation. The consultation concluded that the current thresholds are too inclusive meaning that many transactions have to be notified despite the fact that they do not have a substantive impact on competition in Ireland. Examples of such transactions include property transfers where there is an annual rent roll or acquisitions by financial buyers with broad portfolios. This results in an undue and disproportionate compliance burden on the entities involved and the changes are therefore to be welcomed.
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