Microeconomix examines the issues arising in horizontal, vertical and conglomerate mergers and acquisitions both at national and at EU level. The economic analysis complements legal analysis during due diligence as well as during the preparation of the merger notification to the competent competition authority and the redaction of the Form CO. Our work consists inter alia in defining relevant markets, assessing the risk of unilateral, coordinated or conglomerate anticompetitive effects and identifying potential acceptable remedies.

Economic theory plays a central role in defining relevant product and geographic markets. Combining economic theoretical models with facts finding and data analysis allows us to offer its support in determining which products or services may be considered substitutable to those involved in the transaction and at which geographical level (national, EU level, worldwide, etc.) the effects of the proposed concentration should be evaluated. We master quantitative techniques, such as correlation tests, price elasticity and cross elasticity measurement, SSNIP, allowing evaluating the substitutability between the products of the merging parties and those of their competitors.

We understand that the market share measures and concentration following the merger may give inadequate predictions of the future market power of the new entity. Microeconomix has the expertise to conduct a robust analysis of the unilateral effects of the merger by assessing the competitive constraints exert by competitors, potential entrants and customers and verifying efficiencies associated to the operation. Our analyses rely on the state-of-the-art economic theories combined with detailed market research and/or econometric modeling.

The analysis of coordinated effects, which relies on the Airtours case law criteria stemming from economic theory (EUMR), is a central concern for the competition authorities. Our understanding of the economic theories combined with detailed market research allows us to evaluate the risk of tacit collusion between competitors following the merger according to different scenarios of common line of conduct.

Microeconomix expertise also includes the economic analysis of conglomerate effects, in particular portfolio and multi-market presence effects. We master techniques that enable us to evaluate whether a multi-market presence of the merging parties could raise a concern of the competition authority. By combing quantitative methods with detailed market research, we help to address those concerns and to simulate the merger effects on all the relevant markets.

The sound analysis of the effects of the merger allows us anticipating the likely theories of harm that will be raised by competition authorities, predicting the likely impact of the operation on competition and considers the potential implications of different remedies packages.

Microeconomix works closely with clients and their legal advisors to respond to information requests from the competition authorities. We also work with economists from the competition authorities and insure that data collection, which can require extraction, collation and formatting of large volumes of data, follows the Commission's Best Practices for the submission of economic evidence and data in cases concerning the application of articles 101 and 102 TFUE and in merger cases.