The European Union is preparing a significant revision of its merger rules aimed at limiting the ability of individual member states to block cross-border corporate takeovers, as policymakers seek to strengthen the region’s global competitiveness.
The initiative comes amid rising concern in Brussels that national governments have increasingly stepped in to prevent major deals, often prioritizing domestic interests over the broader functioning of the single market. According to The Financial Times, EU officials believe such interventions have at times obstructed the growth of companies that could otherwise expand to compete more effectively with rivals in the United States and China.
A European Commission discussion paper, cited per The Financial Times, suggests that while governments are permitted to intervene in mergers on grounds such as national security, some actions may have gone beyond what is necessary. The document indicates that updated guidelines could better define when such вмешения are justified, providing companies with clearer expectations during takeover processes.
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Recent disputes have underscored the issue. Germany has opposed UniCredit’s attempt to acquire Commerzbank, while Spain has resisted a proposed merger between BBVA and Banco Sabadell. Italy has also exercised its special “golden powers” in response to UniCredit’s bid for Banco BPM. According The Financial Times, these cases have heightened fears among EU officials that fragmented decision-making could weaken the cohesion of the single market.
Brussels is concerned that continued national intervention risks undermining efforts to create large, pan-European companies capable of competing on a global scale. Per The Financial Times, the proposed reforms aim to strike a balance between maintaining competition safeguards and enabling businesses to grow through consolidation.
The European Commission has emphasized that it will still prevent excessive market concentration. However, it also intends to encourage what it describes as “pro-competitive scaling-up” to bolster Europe’s economic position internationally, according The Financial Times.
Competition commissioner Teresa Ribera has noted that merger policy alone cannot address Europe’s competitiveness challenges, highlighting the importance of further integrating the single market, particularly in industries such as telecommunications.
EU leaders are expected to discuss the proposed changes at an upcoming summit in Brussels. Commission president Ursula von der Leyen has indicated that revised rules will support mergers that enhance scale while preserving fair competition. She also stressed that deals will continue to face scrutiny to prevent the emergence of monopolies or oligopolies, ensuring that markets remain accessible and affordable for businesses and consumers across the bloc.
Source: The Financial Times