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What are the potential outcomes of the merger investigation? Please include reference to potential remedies, conditions and undertakings.
Once the Israeli Antitrust Authority (IAA) has examined a merger of companies there are three possible outcomes; the general director may approve, object or stipulate conditions for approval of the merger.
The most common outcome is approval.
If the merger raises a reasonable concern of significant harm to competition, the general director must reject it or stipulate conditions in which approval can be issued.
According to the IAA Guidelines Regarding Remedies for Mergers that Raise Reasonable Concerns of Significant Harm to Competition, if a merger raises such concerns, the goal is to find a means of remedying the harm to competition as a result of the merger. The IAA prefers to authorise mergers subject to conditions that provide a complete solution to the concerns, rather than oppose them.
Generally, there are two types of condition – structural and behavioural.
Structural conditions aim to deal with changes in the market structure that cause the concerns. Behavioural conditions aim to address anti-competitive behaviour that may originate from structural changes. The IAA prioritises structural conditions as these require less supervision and are easier to set and enforce on the parties.
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