Cross-border mergers in Europe

Amid discussions about a currency crisis in Europe and at a time where the post-financial crisis era is accompanied by the implementation of sweeping reforms all around the globe, cross-border mergers in the European Union are vital in many respects. First of all, cross-border mergers as a means of consolidation in the financial services industry are likely to become more and more important in the aftermaths of the crisis. Owing to intensive regulations- especially the new capital requirements under BASEL III - it is envisaged that in 2012, at least as far as the smaller and regional financial institutions are concerned, consolidation will be taking place. Furthermore, cross-border mergers have the potential to contribute to the realization and completion of a European internal market. As far as that goes, it has to be noted that not only large corporations, but also small and medium-sized enterprises heavily rely on a legal framework allowing them to take their businesses across the border. After all, it is broadly acknowledged that small and medium-sized enterprises are the backbone of the European economy and essential for its competitiveness. To this end, the law has to provide reliable, flexible and efficient transaction structures.