An Overview: Mergers and Acquisitions Law

Mergers and acquisitions law refers to a set of laws that include labor, companies and business competition. It also involves cases where firms restructure their businesses. Mergers and Acquisitions are in vogue these days due to their effectiveness and growth potential in the world of business and industries.

The way to mergers and acquisitions is taken by firms for consolidating fragmented segments of the market so as to increase their efficiency. This often gives them a competitive edge. Many countries have promulgated mergers and acquisitions law for monitoring the business units. There are also over hundred global competition laws that regulate mergers and acquisitions.

Enforcement of Mergers and Acquisitions Law

In most of countries, there are regulating agencies which look into the business affairs till its culmination into mergers and acquisitions. For instance, in Australia, the Competition and Consumer Commission deals with both domestic and global mergers. The Commission administers the mergers provisions of the Trade Practices Act 1974, the set of laws dealing with mergers and acquisitions.

However, the regulatory bodies such as Australian Commission do not possess unfettered discretion in their administration or enforcement of the mergers and acquisitions laws. The ultimate guardian of these laws is the courts of the land. This assumes significance as the final arbiter. Also, the court decides if any breaches of the laws have occurred.

Global Trend in Mergers and Acquisitions Law

Global trend in merger and acquisition law indicates that the approval for the same can be obtained within a period of 30 to 60 days. Sometimes firms have to wait for a long time to get legal approval. Such delay occurs due to the complex nature of mergers and the requirement of close scrutiny by the regulatory bodies.

According to the guidelines of the International Competition Network ' an association of international competition authorities ' approval time for simple merger and acquisitions cases is 6 weeks. For more complex cases, this period is 6 months.

Issues Falling under Mergers and Acquisitions Law

Laws pertaining to mergers and acquisitions cover the following areas:

• Drafting of complex commercial agreements
• Joint venture agreements
• Public and private partnerships
• Corporate governance
• Privatization
• Hostile takeovers
• Building contracts

Law firms such as Rosendorff specialize on mergers and acquisitions law and have good experience in advising their clients on major policy matters related to mergers and acquisitions.