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EU Reportedly Plans to Relax Merger Rules to Create "Champion" Companies to Compete with Chinese and US Giants
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The Financial Times reported that the European Union is planning its most significant relaxation of corporate merger rules in decades, aiming to create "champion" companies capable of competing with major Chinese and US corporations. According to draft guidelines obtained by the Financial Times, the European Commission will place greater emphasis on "innovation, investment and the resilience of the internal market" when reviewing whether to approve transactions. The proposed changes would mark the most sweeping overhaul in Brussels since the 2000s, when competition regulators placed consumer impact at the core of merger decisions. The new merger guidelines, which remain subject to revisions, will broaden the scope of considerations used by Brussels in assessing whether mergers are acceptable. Investment bankers and investors have long awaited such reforms. The report said that, if approved by the European Commission, the new policy direction would reflect a broader shift in the political climate across the continent, with growing calls to foster more "European champion" companies capable of rivaling Chinese and US corporate giants. An EU official described the guidelines as a sharp departure from previous practices, calling them a "forward-looking approach that reflects the increasingly harsh reality of global competition." The official added that the guidelines embody the priorities of the current Commission. To enhance competitiveness, European Commission President Ursula von der Leyen has advocated a "new competition approach" that supports companies in scaling up globally. However, the move has faced resistance from some liberal member states and factions within the Commission, which worry that loosening merger restrictions could undermine innovation, curb investment and force consumers to pay higher prices for goods and services. (da/u) This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. Auto-translated by AI AASTOCKS Financial News |
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