Navigating the Control of Concentrations between Undertakings Law in Cyprus requires more than just legal box ticking. As the Commission for the Protection of Competition (CPC) intensifies its scrutiny of market dynamics, rigorous economic analysis has become the cornerstone of a successful clearance strategy.
At Trojan Economics, we provide specialised economic advisory services to help businesses and legal teams navigate the complexities of merger control in Cyprus, from initial threshold assessments to final Phase II clearances.
Comprehensive Merger Notification Services
1. Threshold Analysis & Jurisdictional Advice
The first step in any M&A transaction is determining whether a concentration is of “major importance.” We analyse turnover data to verify if your deal meets the statutory thresholds:
- Individual Turnover: At least two of the participating undertakings each have an aggregate turnover exceeding €3.5 million.
- Local Presence: At least two of the participating undertakings achieve turnover within the Republic of Cyprus.
- Aggregate Local Impact: At least €3.5 million of the combined aggregate turnover of all participating undertakings is achieved within Cyprus.
2. Complete Merger Notifications
Because Cyprus lacks a formal “Simplified Procedure,” every notification must be technically complete to avoid “stopping the clock.” We manage the preparation of the economic sections of the filing, ensuring all data regarding market shares, competitors, and supply chains meet the CPC’s standards for a “complete” notification.
3. Strategic Market Definition & Competitive Assessment
A merger’s success often rests on the definition of the relevant market. We use sophisticated economic tools to delineate product and geographic markets, ensuring the CPC receives a realistic view of the competitive landscape. Our analysis includes:
- HHI Calculations: Assessing market concentration levels.
- SSNIP Tests: Identifying if a “Small but Significant and Non-transitory Increase in Price” would be profitable for a hypothetical monopolist.
- Closeness of Competition: Evaluating the intensity of competition between the merging parties.
Navigating Phase II Investigations & Remedies
If the CPC identifies “serious doubts” regarding a merger’s compatibility with a competitive market, it may initiate a Phase II investigation. This is where economic evidence becomes your strongest defence.
Economic Defences & Evidence
We build robust, data-backed arguments to support your deal, including:
- Efficiency Defences: Quantifying how the merger will lead to lower prices or better quality for Cypriot consumers.
- The Failing Firm Defence: Providing the economic proof required to show that one party would exit the market without the merger.
- Remedy Design: Proposing structural or behavioural commitments that resolve competition concerns while protecting the deal’s commercial value.
Why Choose Trojan Economics for Merger Clearance?
As a boutique firm specialising in competition economics, we bridge the gap between complex data and regulatory requirements.
- Local Expertise: Unparalleled experience dealing with the Cyprus CPC.
- Data-Driven Insights: We transform raw market data into persuasive economic narratives.
- Strategic Partnership: We work seamlessly with legal counsel to provide a unified defence of the transaction.
Contact Our Competition Team Today
Don’t let regulatory hurdles delay your growth. Ensure your merger notification is backed by the highest standard of economic analysis.
