MERGER CASES - EU COMMISSION DECISIONS
Company mergers which have cross-border significance must be
authorised by the EU. In this process the EU checks the legal
competitive effect of the merger within the industry. Execution of the
merger is only possible with EU consent.
An EWC is entitled to consultation by the EU. European Works Councils
are, however, often informed of planned mergers very late on because of
their annual rhythm of meetings. As soon as EWC members hear of a
possible merger they can search for information on the relevant EU
internet site. The EWC can also apply to the EU to be consulted as an
interested party. It is useful here to tell the EU if the EWC was
neither informed nor heard on the matter. This can have the consequence
that the merger verification process is suspended because the company’s
management did not discharge its legal obligation to the EWC.
The company’s application is to be made on the so-called CO form and
this is an important basis of information for the EWC. The form alone
as such gives the EWC important pointers towards its further course of
action.
As a rule the synergies of a merger are based on the saving in
personnel costs through the laying off of staff. The Commission has
thus far checked applications without consideration of a merger’s
effects on the employment situation. Corresponding representations by
EWCs have so far been ignored by the EU.
Information on the submission of an application and the associated
decision are documented daily on an EU internet page. A search is
possible according to various criteria such as company’s name or the
date of the application.