- Professional News
- 06 June 2014
Increased merger control in Greenland
On 1 July 2014, an amended competition act enters into force in Greenland. The Act includes the obligation to notify mergers when the Greenlandic turnover thresholds are exceeded.
As of 1 July 2014, mergers effective in Greenland will be subject to tighter regulation than previously. That follows from an amendment of Greenland’s Competition Act.
The current Competition Act from 2007 contains an obligation to notify only after a merger has been completed. The amended Act introduces the obligation to notify prior to a merger as well as a prohibition against implementation before approval has been obtained.
Obligation to notify
Only mergers pertaining to the Greenlandic market must be notified in Greenland. The obligation to notify applies when:
- The involved companies’ combined annual turnover in Greenland amounts to no less than DKK 100m.
- At least two of the involved companies each have an annual turnover in Greenland of no less than DKK 50m.
Any merger subject to the obligation to notify in Greenland must be put on hold until the merger has been notified to and approved by the Greenlandic competition authorities.
Upon receipt of a complete merger notification, the Greenlandic competition authorities must within 40 working days either approve the merger in phase I or decide to initiate a separate investigation of the merger (phase II).
If a separate investigation is initiated, the competition regulator’s processing deadline will be extended by up to 90 working days which will start to run at the expiry of the deadline for approval in phase 1.
Provisions not yet in place
The detailed rules of notification of mergers in Greenland are still in progress, and it is uncertain if they will be in place before the amended Competition Act enters into force on 1 July 2014.
Want to know more?
If you have any questions about the increased merger control in Greenland, you can contact us without obligation for help on specific problems or to set up a meeting.