Question
Roipecheur is a multinational home improvement/do-it-yourself store head quartered out of Marseille, France. With 1100 stores all over Asia and Europe, itisthe third largestcompanyin the
Roipecheur is a multinational home improvement/do-it-yourself store head quartered out of Marseille, France. With 1100 stores all over Asia and Europe, itisthe third largestcompanyin the worldin its retail category,right behind Home Despotsand Lewes, both of which are headquartered in the USA.Some of Roipecheur'sbrandsincludeB&Q, Brico Depot, Screwfix and Castorama. Two of these four brands areconsidered among the top 10 best DIY stores in the world, right alongside their parentRoipecheur.B&Q and Brico Depot were previousRoipecheuracquisitions. Roipecheurand Home Despotsare both publicly traded on their respective stock exchanges.Bohemius, headquartered in Switzerland and with 250 stores all over Europe, are wellknown for their home improvement and gardening options,and the ability to buy all DIYneeds under one roof. In the early 2000s, they almost partnered with Home Despotsbutit never happened.Roipecheur and Home Despotshavejustannounced their intention to merge.Bohemiusis concerned that if the merger proceeds, the business efficiencies achieved by theonce-merged entity will crush Bohemius'business like a bug on a windshield.a)Home Despots'American-based external legal counsel who have been retainedto advise on the proposed merger does not believe EU merger law is anything tobe concerned about in this case.Are they right to be unconcerned? If not, whynot?Briefly explain
b) Can Bohemiusand/or the EC do anything/pursue any stepto threaten themerger, and if so, what? Briefly describe.
c) Identify the relevant EU legal issues potentiallypresented bythis fact pattern;state the relevant legal tests applied by the European Commission(EC)andEuropean Court of Justice in assessing those issues;and state your view as towhether the proposed merger may run afoul ofthe relevant legal tests.
d) Lastly, describe in one sentence an example of onepossiblecondition thatRoipecheur and Home Despotsmight be forced to accept in order to gainEUapproval for theirproposedmerger to proceed.
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