Source: by Davis Polk & Wardwell LLP via internationallawoffice.com 2 August 2017
“The use of cross-border mergers by English companies has arguably exceeded expectations since the EU Directive on Cross-Border Mergers of Limited Liability Companies (2005/56/EC) was implemented in the United Kingdom by the Companies (Cross-Border Mergers) Regulations 2007 (as amended) in December 2007.
The procedure has proven to be a popular means of reorganising European group structures and has been occasionally used in arm’s-length cross-border transactions, including Liberty Global’s takeover of Cable & Wireless Communications and the combination of Technip and FMC Technologies.
However, recent transactions have tested the boundaries of the sorts of structure that may be permitted under the regulations, which could reduce the popularity of the procedure.”
This article discusses the implications of the Easynet Global Services, Portman Insurance and Cable & Wireless Communications decisions.