Corporate M&A regulatory strategy - Perspectives on EU merger control / The case of Outokumpu and Inoxum

Abstract

The objective of this thesis is to study challenges that companies can encounter during the merger control process of the European Union. Perspectives on EU merger control are set to be contrasted with relevant issues of industry structure, international competition and growth strategy by mergers and acquisitions (M&A). The study aims to provide a framework that companies in the future can use to plan their regulatory approach in order to go through the EU process faster and more efficiently.

A single case study approach was selected for the research. The study relies on both secondary and primary qualitative data sources. Primary data comes in the form of interviews with key senior managers of the case company who were closely involved with the EU approval process. Primary data is processed with the use of thematic networks. Secondary data sources are newspapers, public EU and Outokumpu sources.

The research study finds that EU merger control can exert a great influence on firms' competitive strategy considerations. On one hand, firms need to calculate with the presence and anticipated attitude of the EU authority which can impact their strategy yet before any notified M&A transaction. On the other hand, the EU authority can modify firms' strategy during a merger control process through merger remedy requests.

The study furthermore finds that important differences can exist between merging firms and the EU authority in relation to how a merger case is methodologically evaluated. The main differentiating point between the case company and the EU authority was found to be the EU authority's stubbornly European view on a global business. Such differences can have profound implications for the decision outcome.