Increasingly, we're seeing overseas antitrust authorities stepping up their merger enforcement efforts. Take Poland, for instance. The Polish Anti-Monopoly refused to approve a deal between two producers of flavored vodka. The agency declined to approve the deal after concluding that the combined entity's market share would exceed 52%, 12% higher than the 40% threshold generally used by the agency when approving mergers.
Refusing to give up, the parties have decided to fight. According to this press release, Central European Distribution Corporation has filed an appeal with the Polish Anti-Monopoly office. The company disputes the agency's findings with respect to market share, although its press release notes that it is the "largest vodka producer in Poland by value."
We'll have to wait and see how this one plays out, but acquisitive companies can learn something from this dispute. The most obvious lesson--the FTC, DOJ, and EU are not the only game in town when it comes to merger enforcement. The other lesson--plan for the worst. In an environment in which any one of dozens of antitrust agencies around the world can challenge a merger, companies must plan for all contingencies including the possibility of a merger challenge from a country that only recently established an antitrust regime.
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