State intervention in mergers and acquisitions

Abstract

The purpose of this paper is to answer to the following main question: How to reduce the negative impact of M&As on the economic competition in the Republic of Armenia? For the purpose of answering to this question 2 main aspects shall be considered: 1) What are the possible damages caused by M&As on the economic development of a country and how such risk can be addressed? The discussion will be held from the perspective of both economic entities and the state. 2) What is the current status of merger control in the Republic of Armenia (RA)? Since the antitrust law in the Republic of Armenia is quite new and under construction, the main objective shall be to identify the shortcomings and gaps and its practical implementation. The RA Law “On Protection of Economic Competition” and the relevant decisions of the RA State Commission for the Protection of Economic Competition will be in the spotlight. The effectiveness of the work of the Commission and its decisions is also questionable. However, the purpose of this work is not only to outline problems, but also to search for and to come up with recommendations for its improvement. Hence, analytical discussion, using the method of documentary analysis, will be held on the advantages and deficiencies in the regulation and practice trying to suggest possible solutions to the problems.