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EC Mergers Regulation and Regional Economic Cohesion

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  • J H Love

    (Department of Economics, University of Strathclyde, 100 Cathedral Street, Glasgow G4 0LN, Scotland)

Abstract

Despite the fact that the European Community (EC) is committed to reducing the economic inequalities between and within its member states, EC mergers policy has no clear mechanism by which the regional economic consequences of takeovers can be assessed or taken into account during merger investigations. This is important, because there is clear evidence that external takeovers are one method by which regional economic imbalance may be exacerbated. In this paper, proposals are put forward for the explicit inclusion of an economic cohesion clause into EC mergers regulation. Also, the advantages such a clause would have are discussed, and the possible objections to the consideration of regional issues during merger investigations are assessed.

Suggested Citation

  • J H Love, 1994. "EC Mergers Regulation and Regional Economic Cohesion," Environment and Planning A, , vol. 26(1), pages 137-152, January.
    • Handle: RePEc:sae:envira:v:26:y:1994:i:1:p:137-152
    DOI: 10.1068/a260137
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    References listed on IDEAS

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    1. Harris, Richard I D, 1988. "Market Structure and External Control in the Regional Economies of Great Britain," Scottish Journal of Political Economy, Scottish Economic Society, vol. 35(4), pages 334-360, November.
    2. Ashcroft, Brian K, 1988. "External Takeovers in Scottish Manufacturing: The Effect on Local Linkages and Corporate Functions," Scottish Journal of Political Economy, Scottish Economic Society, vol. 35(2), pages 129-148, May.
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    Cited by:

    1. Keith Chapman & Helen Edmond, 2000. "Mergers/Acquisitions and Restructuring in the EU Chemical Industry: Patterns and Implications," Regional Studies, Taylor & Francis Journals, vol. 34(8), pages 753-767.
    2. Andy Cosh & Alan Hughes, 1996. "International merger activity and the national regulation of mergers: A UK perspective," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 23(3), pages 279-302, October.

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