Under the Competition Act, 2002 (as amended) Irish companies are obliged to notify the Competition and Consumer Protection Commission (“CCPC”) of mergers and acquisitions (“M&A”) involving parties with turnovers above certain thresholds. New thresholds have been announced by the Minister for Business, Enterprise and Innovation.
The turnover threshold in the previous year of two or more undertakings involved in the proposed merger or acquisition will increase from €3m to €10m.
The aggregate turnover threshold in the previous year of the parties involved in a proposed merger or acquisition will increase from €50m to €60m.
These changes will reduce the burden on smaller enterprises, while also allowing the CCPC to better allocate its resources and to focus on the larger M&A transactions. It will also align the Irish regime closer to international norms.
While companies will not need to notify the CCPC of deals below these new thresholds, they will still need to consider whether their deals raise other possible competition law issues, regardless of size.
These changes will come into effect on the 1st of January 2019.