mergers & acquisitions and strategic sector

Auteur :Date :

Conférence

Pascal DUPEYRATOctober 31th 2013

Mergers & Acquisitions and Strategic Sectors

1

Mergers & Acquisitions and Strategic Sectors

Usual business

2

Strategic sector

Unusual businessMergers, Acquisitions,

Investments

State's specific powers

3

RefusalsNegotiated

agreements

CancellationMonetar

y sanction

s

Authorization

Mergers & Acquisitions and Strategic Sectors

Mergers & Acquisitions and Strategic Sectors

Ceramic pan

4

Am i dealing with a strategic sector ?

Armored vehicle

Chinese Government

Mergers & Acquisitions and Strategic Sectors

5

Datas

Customer/Military

Mergers & Acquisitions and Strategic Sectors

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Pork

Smithfield

Food Security

Shuanghui International

Mergers & Acquisitions and Strategic Sectors

7

More and stronger legislation

Mergers & Acquisitions and Strategic Sectors

3 consequences of the presence of strategic sectors :

8

Specific M & A

Specific monitoring issues

Specific management

01

Specific Mergers & Acquisitions

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Specific Mergers & Acquisitions

What makes a merger/acquisition in a strategic sector specific ?

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Need for an administrative

authority

Specific Mergers & Acquisitions

Administrative authority with unique features

11

Regulations open to broad interpretation

Non-public case law

High sensitivity to political factors

Incestuous State controls

Unclear means of appeals

02

Specific Monitoring Issues

12

Specific Monitoring Issues

13

In legal terms:

- Foreign investment ?

The core issue : determining the nature of the transaction

- Takeover ?

Specific Monitoring Issues

14

In institutional terms:

- Sector outside or within the scope of public policy ?

- Strategic sector ?

03

Specific Management

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Specific Management

3 levels of management:

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Administrative management :

Filing the authorization application

Waiting for authorization

Specific Management

17

Strategic management :

Anticipating the forces at play

Reducing any competitive risk

Specific Management

18

Offensive management :

Involving the state

Sanctuarise the transaction

Conclusion

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Mergers & Acquisitions and Strategic Sectors

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Source UNCTAD

FDI trend

Mergers & Acquisitions and Strategic Sectors

Geoconomics trends :

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Shift in the financial balance of power :

- Multinational corporations

- Investment funds- Sovereign funds

Mergers & Acquisitions and Strategic Sectors

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Huge competition for access to:

- Rare commodities

- Critical infrastructures

- Strategic technologies

- Key ressources

Mergers & Acquisitions and Strategic Sectors

23

Strategic sectorShift from an endured situation

to a mindset partnership

Contact :

Thank You

Pascal DUPEYRAT

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