Ireland to simplify merger notification process – but not yet

On 14 June 2019, Ireland's competition agency announced the introduction, probably in 2020, of a simplified merger review procedure.

The Competition and Consumer Protection Commission (CCPC) is proceeding with its proposal, announced in 2018, for a "simplified merger notification procedure" for M&A deals which do not raise competition concerns.

The CCPC held a consultation at the end of 2018.  It has now decided to move to the next phase.

However, the procedure will not be introduced until 2020 as the CCPC is now drafting the guidelines on such issues as:

  • The criteria which may be used to select notifiable transactions for assessment under a simplified procedure
  • Examples of situations where mergers which qualify for assessment under a simplified procedure may be reviewed under a standard procedure
  • An overview of what changes will be made to current merger procedures

The draft guidelines will then be published to allow for a period of further consultation. The CCPC anticipates that this consultation will take place before the end of 2019.

The CCPC's decision brings it into line with the European Commission and many other competition agencies. It is surprising that its introduction could span 2018-2020 but there is merit in getting these things right.

There has been a drop in merger notifications to the CCPC - there were 16 notifications made to the CCPC as of 20 June 2019 which was a drop of 68% from the 50 notifications as of the same date in 2018 – the drop is due probably to (a) the change on 1 January 2019 in the merger thresholds for compulsory notifications and (b) the market uncertainty associated with Brexit and global trade.  It will therefore be interesting to see how many transactions will ultimately require the full review process if the simplified procedure captures a meaningful number of notifications.

For queries or for further information on this topic please contact Dr Vincent Power, Head of EU & Competition, at A&L Goodbody.

Date published: 24 June 2019