Document defines various concepts related to the elements of a business concentration operation: the transfer or change of control and the production of effects in the national territory.
The National Directorate for Investigation and Promotion of Free Competition (DLC) of Indecopi published the “Guidelines for the qualification and analysis of business concentration operations”. This in order to guide companies, and market agents in general, on the key elements for the qualification and analysis of a business concentration operation.
“The guidelines are issued within the framework of Law 31112, which establishes the Prior Control of Business Concentration Operations. It has been prepared following the best international practices and with the technical advice of the Global Unit of Markets, Competition and Technology of the World Bank and the International Finance Corporation – IFC”, indicated Indecopi in a press release.
The guidelines will help economic agents to identify which transactions qualify as business concentration operations and to know the analysis that Indecopi will carry out on the effects of a business concentration operation on the market, in order to determine if it generates a significant restriction of competition and, therefore, it should be approved, approved with conditions, or denied.
This indicates that they are within the scope of application of the Merger Control Lawchanges in the control structure of economic agents as they imply a modification in the way in which shareholders can exert a decisive and continuous influence on the competitive strategy of a company. This rule is also applicable to concentration operations that involve the modification of the internal control structure of a joint venture or other associative modalities.
In addition, it specifies that changes in shareholding percentages within a company do not qualify as a concentration operation when they do not produce a change in the control structure.
In the document Various concepts related to the elements of a business concentration operation are defined: lto transfer or change of control and the production of effects in the national territory. Likewise, it includes a chapter dedicated to clarifying the application of the concentration regime to transactions of particular characteristics in the financial market.
On the other hand, the guidelines also develop criteria for the economic analysis of concentration operations, in particular, those related to the definition of the markets involved and the evaluation of the effects of horizontal and non-horizontal concentration operations. The document can be consulted by clicking here.
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