Mexican Regulator Updates Merger Guidelines

The Federal Economic Competition Commission (COFECE or Commission) published the update to the Guide for the Notification of Concentrations, which was enriched with the comments received in a public consultation.

With this, greater certainty is provided to economic agents about how the Commission analyzes concentrations to comply with its mandate to prevent those that may affect competition in the markets. In this Guide COFECE added elements that it considers in its concentrations analyses to clarify: 1) the treatment it gives to collaboration agreements between economic agents, known as Joint Ventures: 2) questions related to the calculation of notification thresholds; 3) who are obliged to notify a concentration that involves multiple buyers, as it occurs in capital raising rounds for startups, and 4) what information must be submitted to make the case of a company in precarious economic situation.

Given that in some cases Joint Ventures may have elements that can be equated to a concentration1, the Guide provides more information so that economic agents can distinguish them and know which and when they must be notify them to COFECE.

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