European Court of Justice Clarifies Rules on Gun-Jumping
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Key takeaways:
- Important judgment by the European Court clarifies the scope of what constitutes ‘gun-jumping’ in an M&A context.
- Standstill obligation should be limited to actions that contribute to the acquirer taking control of the target.
- However, judgment leaves scope for interpretation which allows the European Commission to limit changes to its current practice.
- Competition authorities globally increasingly looking to prosecute procedural breaches, and violations have the potential for very significant fines.
- Merging parties should stay vigilant about deal structuring and integration planning.