The regulatory agencies are critical in addressing the competition and ethical concerns in M&A transactions. Thus, they should not prolong the duration of an M&A deal while performing their duties since adverse rulings by courts and regulatory agencies can deter deal completion and result in operational and financial consequences. Drawing on Thomson SDC Mergers and Zephyr databases, this chapter empirically shows how regulatory agencies prolong the M&A deal duration of Brazilian acquirers. Their study finds a positive association between the involvement of regulatory agencies and prolonged M&A deal durations in emerging economies.

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Red Tape Roadblocks on M&As: Emerging Economies’ Regulators as a Source of Inefficiency

  • Catherine Cai,
  • Rifat Kamasak,
  • Aslihan Bozcuk

摘要

The regulatory agencies are critical in addressing the competition and ethical concerns in M&A transactions. Thus, they should not prolong the duration of an M&A deal while performing their duties since adverse rulings by courts and regulatory agencies can deter deal completion and result in operational and financial consequences. Drawing on Thomson SDC Mergers and Zephyr databases, this chapter empirically shows how regulatory agencies prolong the M&A deal duration of Brazilian acquirers. Their study finds a positive association between the involvement of regulatory agencies and prolonged M&A deal durations in emerging economies.