|What is a derogation from the suspensive effect?
If the effective conclusion of a merger is subject to approval from the Autorité de la concurrence, in certain exceptional circumstances, duly argued by the parties, the Autorité may issue a derogation enabling them to finalise part or all of the transaction without waiting for the approval decision.
Although derogations from the suspensive effect are by definition exceptional, takeover offers on companies in liquidation or receivership are frequently benefiting from them. A derogation may also be justified in other exceptional circumstances, such as a risk of imminent dissolution of the acquisition target, the initiation of collective proceedings or the need for an acquiring party to provide guarantees or obtain financing to keep the target afloat.
However, the issue of a derogation by the Autorité is without prejudice to the final decision made in the light of its full assessment. The Autorité may impose corrective measures, or even prohibit the transaction if it would adversely affect competition.