ABSTRACT
This chapter details the method of assessment by the European Commission of mergers and acquisitions in its role as competition authority. The European Commission has cleared under the European Union Merger Regulation the proposed merger between British Airways of the UK and Iberia of Spain, both active in air passenger and cargo transport and related services. Various methods are used to join companies together and it is sometimes difficult to determine whether there has been one or other type of concentration. The acquiring party may acquire shares by making an offer on outstanding shares on the stock exchange, gradual purchasing a majority of the shares on the stock exchange or purchasing shares by agreement with shareholders. ‘Genuine’ acquisitions may also be achieved in different ways: by acquiring a share majority or a decisive minority. Forced acquisitions are sometimes known as hostile acquisitions or hostile takeovers.
