Finance
EU regulators scrap merger power aimed at killer acquisitions after court veto
Published by Global Banking & Finance Review®
Posted on November 30, 2024
2 min readLast updated: January 28, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on November 30, 2024
2 min readLast updated: January 28, 2026
EU regulators have abandoned a merger tool targeting killer acquisitions following a court veto, impacting tech and pharma sectors.
By Foo Yun Chee
BRUSSELS (Reuters) - EU antitrust regulators on Friday ditched a merger tool aimed at killer acquisitions two months after Europe's top court vetoed this expanded merger power which had been widely criticised by companies as regulatory over-reach.
The Luxembourg-based Court of Justice in September sided with Illumina in its fight against the European Commission's decision to wield a power called Article 22 to assess its $7.1 billion Grail bid even though it was below the EU's merger revenue threshold.
"In view of this judgment and in line with the principle of good administration, the Commission has decided to withdraw its Guidance," the EU executive said in a statement.
The Guidance issued in March 2021 allowed the EU antitrust watchdog to encourage or accept requests from national competition agencies to examine mergers even when these deals fall outside their competence.
The EU competition enforcer had in recent years used this power against so-called killer acquisitions in which big companies buy startups to shut them down, especially in the technology and pharmaceutical sectors.
The Commission said it may look to other methods to catch killer acquisitions.
"The withdrawal of the Guidance is without prejudice to any future initiative by the Commission in relation to transactions involving small and medium-sized enterprises or small midcaps that fall below relevant jurisdictional thresholds," it said.
(Reporting by Foo Yun Chee, Editing by Louise Heavens)
The article discusses the EU regulators' decision to scrap a merger tool aimed at preventing killer acquisitions following a court veto.
The tool was scrapped after the Court of Justice sided with Illumina, ruling against the European Commission's use of expanded merger powers.
The merger tool primarily targeted the technology and pharmaceutical sectors.
Explore more articles in the Finance category
