Mergers
in sentence
127 examples of Mergers in a sentence
How Best to Promote Research and DevelopmentCAMBRIDGE – Start-ups, incubators, accelerators, angel capital, venture capital,
mergers
and acquisitions, initial public offerings, a liquid stock market, techno-parks, a major university or two, and a group of specialized law firms.
Europe is still realizing the full potential of these benefits, but struggling with natural cross-border
mergers
and the failure or replacement of prominent national companies by better competitors from other countries.
News reports indicate that the Fed has already started saying no to some bank
mergers.
Block the Commission's Competition Policy NowLast December, the European Commission published a Green Paper that contains proposals to reform the EU's rules on
mergers.
Since the new rules on controlling
mergers
will come in the form of a regulation, not a directive, they will take effect immediately, most likely before this summer, and will not need to be ratified by national parliaments.
The new merger control rules go some way toward fixing a number of quirks in the Commission's current procedure for evaluating
mergers.
The proposals also clarify Brussels' jurisdiction in relation to national competition authorities:
mergers
requiring a review by three or more national authorities will go automatically to Brussels.
Without this authority, it is natural for the European regulator to be unusually suspicious of mergers: if a new company created by a merger were, sometime in the future, to rise to a dominant position, the regulator may lack the power to intervene.
This is visible in the number of
mergers
among mid-size asset managers that lack a strong corporate parent.
Europe is abuzz with
mergers
not only to take advantage of Europe's broader economic space but also to confront tough competition in world markets.
No day passes without major headlines of big
mergers
in Europe;Germany is ablaze as its mammoth corporations are performing mating rites.
As to corporate mergers, it remains to be seen how many are simply the vanity plays of bosses who do not face tough stockholder scrutiny.
The Davignon Plan imposed Europe-wide production and price controls, monitored and coordinated national governments’ state aids, organized the closures of outdated plants, encouraged mergers, and awarded EU funding to retraining schemes for redundant steel workers.
Most countries see cross-sector
mergers
and acquisitions in the financial services industry; and financial services firms expand through internal growth into new business sectors.
Despite rules prohibiting “predatory” pricing and “anti-competitive” mergers, price wars and acquisitions that increase market leaders’ power are permitted in practice.
The bailout of banks led to a wave of
mergers.
Many countries are also tightening controls on inward FDI; applying stricter screening measures to
mergers
and acquisitions; and demanding reciprocal market access in return for investment.
First, like all
mergers
and acquisitions involving both domestic and foreign investors, investments in or acquisitions of US companies by Chinese companies, whether state-owned or private, must be evaluated by the US Justice Department for their impact on market competition.
In a difficult market,
mergers
– by enabling banks to cut costs, share information-technology platforms, and increase market power, thereby relieving pressure on margins and rebuilding capital – make sense.
So a wave of
mergers
may be on the way.
To be sure,
mergers
and acquisitions are not always a matter of escaping trouble.
Nonetheless, supervisory bodies favor
mergers
to save banks in trouble.
Competition authorities tend to be more reluctant, recognizing the danger that large-scale
mergers
can consolidate an anti-competitive market structure, while creating even more “too big to fail” banks that may cause financial instability in the future.
There is also friction between national supervisors, who prefer domestic mergers, and supranational supervisors, who prefer cross-border
mergers
within their jurisdiction (the eurozone, in the European Central Bank’s case).
From the banks’ perspective, cross-border
mergers
may potentially be the better option, as long as they occur within a single supervisory framework.
The eurozone’s new supervisory framework, supervised by the ECB and possessing a common resolution authority, reflects this recognition of the benefits of cross-border
mergers.
But Europe lags when it comes to such mergers, owing to a broader lack of financial integration.
For European banks – which must navigate vast differences in culture, language, and law in pursuing cross-border
mergers
– this has been much more difficult, especially because many of them also need to cut overcapacity drastically.
Mergers
are no silver bullet, but they could help to alleviate serious problems relatively quickly – though, in the longer term, the banks would still have to tackle the legacy of heavy and rigid structures and rebuild their reputations, with a strong focus on consumer service and fairness.
Bank
mergers
hold much promise, particularly in Europe.
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