Mergers & Acquisitions 2021 A practical cross-border insight into mergers and acquisitions 15th Edition Featuring contributions from: Aabø-Evensen & Co Advokatfirma Dittmar & Indrenius Oppenheim Law Firm Advokatsko druzhestvo Stoyanov & Tsekova in E&G Economides LLC Philip Lee cooperation with Schoenherr GDA Advogados Roca Junyent SLP APM & Co. GSK Stockmann Rokas ASP Advogados Hogan Lovells Schoenherr Atanaskovic Hartnell Houthoff Shardul Amarchand Mangaldas & Co Bär & Karrer Ltd Skadden, Arps, Slate, Meagher & Flom LLP Lee and Li, Attorneys-At-Law BBA//Fjeldco URBAN STEINECKER GAŠPEREC BOŠANSKÝ LEGIS and Partners Ltd Bech-Bruun Vieira de Almeida Lexel Juridique & Fiscal Blake, Cassels & Graydon LLP Wachtell, Lipton, Rosen & Katz Maples Group Bowman Gilfillan Inc. Walalangi & Partners (in association with Nishimura MJM Limited & Asahi) Cektir Law Firm Moravčević Vojnović and Partners in Walkers de Bedin & Lee LLP cooperation with Schoenherr WBW Weremczuk Bobeł & Partners Attorneys at Law DealHQ Partners Nishimura & Asahi Wolf Theiss DF Advocates NUNZIANTE MAGRONE Table of Contents Expert Chapters Global M&A Trends in 2020 1 Scott C. Hopkins, Adam Howard & Craig Kelly, Skadden, Arps, Slate, Meagher & Flom LLP M&A Lessons from the COVID Crisis 4 Adam O. Emmerich & Trevor S. Norwitz, Wachtell, Lipton, Rosen & Katz Q&A Chapters Angola Indonesia 9 Vieira de Almeida / ASP Advogados: Susana Almeida 143 Walalangi & Partners (in association with Nishimura Brandão & Hugo Sipitali & Asahi): Miriam Andreta & Siti Kemala Nuraida Australia Ireland 16 Atanaskovic Hartnell: Lawson Jepps & Jia-Lee Lim 149 Philip Lee: John Given & Andreas McConnell Austria Israel 24 Schoenherr: Christian Herbst & Sascha Hödl 157 APM & Co.: Ian Rostowsky, Stephen Barak Rozen & Elinor Polak Bermuda 35 MJM Limited: Jeremy Leese & Brian Holdipp Italy 165 NUNZIANTE MAGRONE: Fiorella Alvino & Fabio British Virgin Islands Liguori 42 Walkers: Matthew Cowman & Patrick Ormond Japan Bulgaria 172 49 Nishimura & Asahi: Tomohiro Takagi & Keiichiro Schoenherr (in cooperation with Advokatsko Yamanaka druzhestvo Stoyanov & Tsekova): Ilko Stoyanov & Katerina Kaloyanova Luxembourg 181 GSK Stockmann: Marcus Peter & Kate Yu Rao Canada 58 Blake, Cassels & Graydon LLP: Markus Viirland & Madagascar Richard Turner 187 Lexel Juridique & Fiscal: Tafita Ratsimba Cayman Islands 67 Malta Maples Group: Nick Evans, Suzanne Correy & Louise 192 DF Advocates: Dr. Maria Paloma Deguara & Celia Mifsud Cowley Mauritius Cyprus 200 74 LEGIS and Partners Ltd: Bertrand Betsy, Caroline E&G Economides LLC: Virginia Adamidou & George Samy & Zahraa Auchoybur Economides Montenegro Czech Republic 209 81 Moravčević Vojnović and Partners in cooperation Wolf Theiss: Tereza Naučová & Michal Matouš with Schoenherr: Slaven Moravčević & Miloš Laković Denmark 89 Mozambique Bech-Bruun: Steen Jensen & David Moalem 217 Vieira de Almeida / GDA Advogados: Guilherme Daniel & Susana Almeida Brandão Finland 96 Dittmar & Indrenius: Anders Carlberg & Jan Ollila Netherlands 224 Houthoff: Alexander J. Kaarls & Willem J.T. Greece Liedenbaum 104 Rokas: Viktoria Chatzara & Kosmas Karanikolas Nigeria Hong Kong 233 112 DealHQ Partners: Orinari Jeremy Horsfall & Adefere de Bedin & Lee LLP: Claudio de Bedin & Helen Morris Adeyemo Hungary 120 Norway Oppenheim Law Firm: József Bulcsú Fenyvesi & 240 Aabø-Evensen & Co Advokatfirma: Ole Kristian Mihály Barcza Aabø-Evensen Iceland 127 Poland BBA//Fjeldco: Stefán Reykjalín 255 WBW Weremczuk Bobeł & Partners Attorneys at Law: Łukasz Bobeł India 134 Shardul Amarchand Mangaldas & Co: Raghubir Portugal Menon, Sakshi Mehra & Dipayan Bhattacherjee 262 Vieira de Almeida: Jorge Bleck & Domingos Freire de Andrade Table of Contents Serbia Switzerland 270 Moravčević Vojnović and Partners in cooperation 310 Bär & Karrer Ltd: Dr. Mariel Hoch with Schoenherr: Matija Vojnović & Vojimir Kurtić Taiwan Slovakia 318 Lee and Li, Attorneys-At-Law: James Huang & Eddie 278 URBAN STEINECKER GAŠPEREC BOŠANSKÝ: Hsiung Marián Bošanský & Juraj Steinecker Turkey 325 Slovenia Cektir Law Firm: Berk Çektir & Uğur Karacabey 284 Schoenherr: Vid Kobe & Bojan Brežan United Kingdom South Africa 334 Hogan Lovells: Ben Higson, Sarah Shaw, John 295 Bowman Gilfillan Inc.: Ezra Davids & Ryan Kitcat Connell & John Holme USA Spain 342 303 Roca Junyent SLP: Natalia Martí Picó & Xavier Costa Skadden, Arps, Slate, Meagher & Flom LLP: Ann Beth Stebbins & Thad Hartmann 24 Chapter 5 Austria Austria Christian Herbst Schoenherr Sascha Hödl 1 Relevant Authorities and Legislation The 2020 Investment Control Act (Investitionskontrollgesetz or InvKG; ICA) regulates investments by foreign investors. There are regulatory control provisions in certain sectors such 1.1 What regulates M&A? as the banking, insurance, utilities, gambling and telecommuni- cations industries, whereby the scope of applicability is differ- The Takeover Act ently regulated. The admission of trading (either in or outside Public bids are regulated under the 1999 Takeover Act (TA), as of Austria) is irrelevant. thoroughly amended by the 2006 TA Amendment Act. The TA is applicable, provided that the target is a joint-stock corporation 1.2 Are there different rules for different types of (AG) based in Austria, and its shares are admitted to trading on company? the Vienna Stock Exchange (Wiener Boerse; VSE) at a regulated market. If the AG is incorporated in Austria but the shares of the AG are not admitted to trading on the VSE but at a regulated As to the applicability of the TA, the SEA, the SCA, the CA and market in another Member State of the EU, and a public bid is, the regulatory control provisions, see question 1.1 above. The or has to be, launched, the Austrian Takeover Commission (TC) TA and the SEA cease to apply after the delisting of a company, is the authority in charge of the public bid and the TA provi- irrespective of whether these companies continue to have a sions regarding, inter alia, the “control” threshold triggering a dispersed shareholder base or not; however, the SCA, the CA mandatory bid, exemptions from the duty to launch a mandatory and the regulatory control provisions, if any, are still applicable bid and defensive measures apply. If a public company is not within the scope outlined under question 1.1 above. incorporated in Austria but in another EU Member State and its shares are not admitted to trading on a stock exchange at the 1.3 Are there special rules for foreign buyers? seat of the incorporation but on the VSE (if shares are trading on different exchanges within the EU, the first admission of FDI approval trading takes place on the VSE), the TA provisions regarding Under the ICA, acquisition by foreign investors (i.e. inves- the tender offer content and tender offer proceedings apply. tors with their seat outside of the EU, Iceland, Liechtenstein, Norway or Switzerland) of an interest of 10% (for certain highly Other regulations sensitive sectors), 25%, 50% or more, or of a controlling interest Other legislation relevant to public bids includes: in an Austrian enterprise engaged in specific protected industry ■ The 1965 Joint Stock Corporation Act (Aktiengesetz; SCA), sectors (for details on protected sectors, see question 1.4 below), inter alia, with respect to equal treatment of shareholders requires advance approval from the Austrian Ministry for and directors’ statutory duties. The SCA is applicable to Digital and Economic Affairs. AGs incorporated in Austria, irrespective of whether the AG is a public or a private company (thus, admission to Regulated industries trading is irrelevant). Except for the requirement for FTA approval, there are no direct ■ The 1989 Stock Exchange Act (Börsegesetz ; SEA) relates to, Austrian inward investment restrictions. Furthermore, govern- inter alia, stakebuildings, ad hoc disclosure duty and insider mental agencies cannot influence or restrict the completion of trading. The SEA is only applicable to public companies an acquisition by foreign buyers unless: (i) “fit and proper” tests admitted to trading on the VSE. It is irrelevant whether or regulatory approvals are required; or (ii) licences are subject the company is incorporated in or outside of Austria. to revocation in the case of unapproved shareholder changes. ■ The 2007 EU Merger Act (EU Verschmelzungsgesetz ) and the Such clearances to close a transaction are required in regulated SEA allow takeovers by cross-border mergers. industries such as the banking, insurance, telecommunications, ■ The Squeeze-Out Act (Gesellschafterausschlussgesetz ) regulates airline and gambling sectors. the squeeze-out of up to 10% of the remaining shareholders in an AG or an Austrian limited liability company (GmbH). Merger control ■ The 2005 Cartel Act (Kartellgesetz ; CA) applies to mergers not Where an acquisition has a community dimension, the EC subject to European Commission (EC) merger control. The Merger Regulation applies and fully replaces the Austrian applicability of the CA only focuses on turnover generated in merger control regime. Under the CA, mergers must be noti- Austria. It is irrelevant whether the company is incorporated fied if: (i) the undertakings participating in the acquisition had or admitted to trading in or outside of Austria. a turnover in the business year prior to the merger of more than Mergers & Acquisitions 2021 Schoenherr 25 EUR 300 million worldwide; (ii) the undertakings participating 1.5 What are the principal sources of liability? in the acquisition had a turnover in the business year prior to the merger of more than EUR