In this article, members of Ernst & Young's corporate legal team answer ten questions on the rules governing EU and other cross-border mergers. Companies are increasingly focusing on expanding their presence into the global market place. This has inevitably led to greater economic integration and a growing number of cross-border mergers. However, legal frameworks are not always equipped to deal with the complex nature of these transactions. Even if cross-border mergers are permitted under local law, which is not always the case, they may be subject to cumbersome legal and administrative formalities.

In Europe, Directive 2005/56/EC on cross-border mergers (Directive) has cleared up many issues surrounding such mergers, such as determining the applicable law and the formalities to be carried out. However, the Directive only applies within the EU, so cross-border mergers involving other jurisdictions can still be problematic.

This article addresses ten major issues concerning EU mergers and cross-border mergers beyond the EU (international mergers).