mergers & acquisitions and strategic sector
DESCRIPTION
This presentation by Pascal Dupeyrat is acknowledging the fact that when you try to make an M&A deal, there may be a third party at the table if/when it is considered as part of the strategic sector.TRANSCRIPT
Auteur :Date :
Conférence
Pascal DUPEYRATOctober 31th 2013
Mergers & Acquisitions and Strategic Sectors
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Mergers & Acquisitions and Strategic Sectors
Usual business
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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
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Am i dealing with a strategic sector ?
Armored vehicle
Chinese Government
Mergers & Acquisitions and Strategic Sectors
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Datas
Customer/Military
Mergers & Acquisitions and Strategic Sectors
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Pork
Smithfield
Food Security
Shuanghui International
Mergers & Acquisitions and Strategic Sectors
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More and stronger legislation
Mergers & Acquisitions and Strategic Sectors
3 consequences of the presence of strategic sectors :
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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
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Regulations open to broad interpretation
Non-public case law
High sensitivity to political factors
Incestuous State controls
Unclear means of appeals
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Specific Monitoring Issues
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Specific Monitoring Issues
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In legal terms:
- Foreign investment ?
The core issue : determining the nature of the transaction
- Takeover ?
Specific Monitoring Issues
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In institutional terms:
- Sector outside or within the scope of public policy ?
- Strategic sector ?
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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
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Strategic management :
Anticipating the forces at play
Reducing any competitive risk
Specific Management
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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
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Strategic sectorShift from an endured situation
to a mindset partnership
Contact :
Thank You
Pascal DUPEYRAT
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