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Companies Have Six Months to Sort Out Mergers and Acquisitions

Companies Have Six Months to Sort Out Mergers and Acquisitions

The Competition Regulatory Authority (ARC) has given companies that have carried out concentration operations, including mergers and acquisitions, six months to regularise their situation with the regulator. The period began today, 6 January, and will allow companies to notify transactions carried out up to 31 December 2024 without incurring penalties.

In a statement released this Monday (6), the ARC clarifies that the measure applies to all company mergers which, under the terms of the Competition Law, ‘consist, in particular, of the acquisition of all or part of the share capital, rights of ownership, use or enjoyment over a company’s assets, or the conclusion of contracts that confirm a preponderant influence on its management’.

According to the regulator, the mandatory notifications should have been made before the transactions took place, but some operations were carried out without complying with this requirement, known as gun-jumping, which could result in sanctions. However, the ARC decided to grant a regularisation period with no penalties, allowing companies to normalise their situation without legal consequences.

The statement emphasises that ‘once the period has expired, sanctions will be imposed on companies that fail to comply with the notification obligation’, stressing that the regulator’s supervision will continue to be active to ensure compliance with competition legislation.

The ARC also points out that any concentration of companies must follow the requirements established in the legislation in force and that, in future, all transactions of this type will have to be notified in advance to the regulator. The organisation also stresses that ‘companies that fail to comply with the notification obligation may be subject to corrective measures and fines’.

With this initiative, the ARC aims to strengthen compliance with competition rules and guarantee a more transparent and equitable market. ‘With healthy competition, the economy wins,’ concludes the regulator’s statement.

Text: Felisberto Ruco

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