Parties to a proposed development joint venture (JV) must consider the scope and application of the appropriate merger control regime, to avoid delays to the completion of the JV. This applies to new development JVs and also to the acquisition of interests in existing ones. Notification requirements and formal clearance can take two to three months to deal with, even in simple cases, where the EU Merger Regulation applies. Failure to consider this regime can also be costly, as fines of up to 10% of worldwide group turnover can be levied by the European Commission for failure to disclose a notifiable transaction or development JV, or for completing a notifiable transaction or development JV before receiving clearance from the Commission.
In their Property Week article published on 26 February 2016 Paul Chases and André Pretorius of the Herbert Smith Freehills' Corporate Real Estate and Competition teams take a closer look at the EU Merger Regulation tests that might apply to a development JV or corporate real estate transaction and steps that should be taken to avoid delays and fines.
Please click on the link below to read the article from Property Week.
"Companies should take action on EU Merger Regulation" (Property Week, 26 February 2016).