What are the most common antitrust/regulatory issues in cross-border M&A, and how do you assess the likelihood of a deal being blocked?
An advanced M&A Advisory question — expect it in final rounds and case-heavy interviews (IB, PE, Big-4 Transaction Services).
THE SHORT ANSWER
Common issues: merger control filings (e.g., Hart-Scott-Rodino in US, EC Merger Regulation), foreign investment screening (CFIUS, national security), and sector-specific regulations (telecom, media). To assess likelihood, we analyze market shares and concentration (HHI), barriers to entry, and the deal's impact on competition. Also consider political factors and recent regulatory precedents. We conduct a preliminary antitrust assessment early, identify potential remedies (divestitures, behavioral commitments), and engage with regulators proactively. If the deal raises significant concerns, we may advise structuring it with pre-agreed remedies or walking away.
WHAT INTERVIEWERS LISTEN FOR
- ✓Merger control and foreign investment screening
- ✓Market concentration analysis (HHI)
- ✓Political and regulatory precedents
- ✓Remedies and proactive engagement
COMMON MISTAKES
- ✗Underestimating political risk
- ✗Ignoring sector-specific rules
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