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What are the potential outcomes of the merger investigation?
After assessing a notified concentration, the Commission for the Protection of Competition (CPC) will decide as follows:
- The notified transaction does not fall within the ambit of the Control of Concentrations between Undertakings Law.
- The concentration is cleared and considered compatible with the operations of the competitive market.
- A full Phase II investigation of the concentration is required.
Within the context of a Phase II investigation, the CPC will notify the undertakings that they may proceed with modifications to the concentration. Further, the undertakings may suggest additional commitments in order to remove any doubts as to the compatibility of the concentration within the competitive market.
Following further investigation and suggestions, if the CPC’s doubts regarding the compatibility of the concentration are not satisfactorily addressed, it will consider which of the circumstances causing its concerns may be removed, and will make suggestions and negotiate with the parties in order to resolve the outstanding issues.
After reviewing a report, the CPC may declare that the concentration is compatible with the requirements of the competitive markets, subject to any specific terms and commitments made by the relevant participants. Typically, the structure of the transaction is amended or the undertakings offer commitments and remedies (eg, divestments).
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