Economics Committee: The approval of the competition commissioner will be required only in mergers of companies with an annual turnover of over NIS 20 million

The Knesset’s Economics Committee today (Wednesday) approved the Ministry of Economy’s request to amend the antitrust regulations, which deal with the registration, publication and reporting of mergers. The approved amendment is intended, among other things, to change the merger examination procedures so that the approval of the Merger Competition Authority will now be required only if the minimum annual turnover of each of the two companies exceeds NIS 20 million instead of NIS 10 million today, and to replace the merger notification forms. Which will include the full information necessary for the competition authority.

Ha"As Limor Magen Telem, Acting Hugh"The committee presented the regulations and said that this was a complementary procedure to the reform of the Economic Competition Law, which was intended to facilitate and streamline the procedures for examining company mergers. She explained that the amendment deals with two main issues, which are intended to focus and streamline the examination procedures for mergers of companies in the economy. One main issue is raising the minimum threshold that requires the consent of the Commissioner of the Competition Authority to merge from NIS 10 million to NIS 20 million, and the second issue is the replacement of two forms in one complete form that will shorten the waiting time for approval of the merger.

Representative of the Competition Authority, Adv"D. Tzachi Berkowitz explained that raising the minimum threshold for examining mergers will allow the Authority to focus on examining mergers of significant companies that affect the Israeli economy as much as possible. As for the forms, he added that it had been twenty years since the current forms of a merger application were issued, with the accumulated experience leading the Authority to the conclusion that they should be updated.

According to Adv"D. Berkowitz, "The world of competition has changed, and with it the type of information that interests and worries the authority, especially in mergers of companies with competitive affiliation such as supplier and customer, competing companies and players with complementary products with significant market shares. In the current abbreviated form there is almost nothing and it requires the authority to complete many checks with the companies and third parties, so the cheapest one is expensive. The higher the market share of the parties, the more companies will have to provide information on the merger request. In addition, the correct completion of the form is the basis for the Authority’s decision whether to approve the merger or not, and if the Authority receives incomplete or inaccurate information it is a violation of the law and the merger decision will be void it was made without the correct information".

In response to his remarks, Ha added"As Magen Telem, because although more data is requested, the information should shorten the response time of the authority.

Adv"D. Eldad Koresh, who represented the Manufacturers’ Association, welcomed most of the amendments proposed at the hearing, including raising the threshold to NIS 20 million, but regretted the abolition of the use of the abbreviated form and its replacement with one long form. "The form becomes the essence and in many of the mergers the information requested in it is not required and it creates a burden on the companies that want to merge. The form generates customers’ dependence on the help of experts who will fill out the form for them, and also requests in simple mergers complex data such as information about shareholders, who do not always cooperate. We seek to allow companies to fill out the form almost on their own without hiring experts and creators to allow them to do so, with the desire to go into detail in each of the mergers imposing too great a regulatory burden on companies".

In response to his remarks, Adv"D. Berkowitz: "There is a ranking of the scope of information required according to the market share of the companies. Although the parties are comfortable with the abbreviated message, because it saves them time, but the time is not really saved because later on the authority will require a lot more information that it does not receive in the abbreviated form. We have built a form that balances our need to receive information and not to impose a regulatory burden on simple mergers, and problematic mergers for which we will need much more information.".

After approving the regulations, Ha concluded"As a protector of a furrow and greeted Adv"D. Michal Cohen, for her election to the position of Permanent Supervisor of the Competition Authority.

Photo: pixabay

Source link

Leave a Reply

Your email address will not be published.