The Danish Competition and Consumer Authority extends the suspension of merger time limits

On 18 March 2020, the Danish Competition and Consumer Authority announced that the statutory time limits for the processing of mergers had been suspended for 14 days. The reason for the suspension was in particular that, as a result of the COVID-19 outbreak, the Authority was facing challenges in contacting customers and competitors in connection with the review of merger notifications, which would increase the risk of making substantively incorrect decisions. It was therefore deemed necessary to extraordinarily suspend the time limits in section 12 d (1-5) of the Danish Competition Act. The suspension of the time limits appeared from an order that was issued by the Danish Minister for Industry, Business and Financial Affairs and came into effect on the same day. 

Monday morning, the Competition and Consumer Authority announced that the Minister had issued an amending order extending the suspension of the merger time limits. According to the amending order, the merger time limits have been suspended for an additional period of 14 days, so the suspension runs until 13 April 2020, just after Easter. The reason for the extension of the suspension is that the Danish Government has extended the measures to prevent and contain the spread of COVID-19, so the Competition and Consumer Authority needed a corresponding extension of the suspension of the merger time limits. The Authority emphasizes, however, that it will continue to ensure that the ordinary time limits are met to the extent possible. 

Read also our previous newsletter on suspension of merger time limits.

Updated 17 April 2020: Additional extension of the suspension of merger timer limits

On 14 April 2020, the Danish Minister for Industry, Business and Financial Affairs issued an amending order extending the period in which the merger control time limits are suspended. The statutory time limits are now suspended until 10 May 2020 as a result of the COVID-19 outbreak; hence, the total suspension period will be almost two months after the first announcement was issued by the Danish Competition and Consumer Authority on 18 March 2020. 

The Danish Competition and Consumer Authority maintains that they will still try to observe the ordinary statutory time limits in section 12 d (1-5) of the Danish Competition Act. It is noted in this regard that the Authority has approved four mergers within the ordinary time limits since the first announcement of suspension of time limits was issued on 18 March. Furthermore, the Authority has not yet exceeded the time limits in connection with their review of merger notifications. 

Updated 14 May 2020: Extension of the merger control time limits until 18 May

On 7 May 2020, the Danish Minister for Industry, Business and Financial Affairs issued a new amending order extending the period of suspension of the merger control time limits. The reason is that the Danish government has again extended the period in which the COVID-19 measures are in force. Accordingly, the merger control time limits set out in section 12 d (1-5) of the Danish Competition Act will have been suspended for a total of three consecutive months from 18 March to 18 May 2020. The amending order entered into force on 10 May 2020. 

The Danish Competition and Consumer Authority wrote in that connection that they will still try to comply with the ordinary merger control time limits and that they have not exceeded any time limits since the suspension on 18 March. In addition, the Authority has approved four mergers within the ordinary time limit and is currently processing another seven mergers. Enterprises are still encouraged to contact the Authority well in advance if they wish to merge. 

Updated 18 May 2020: Extension of the merger control time limits until 8 June

The Danish Minister for Industry, Business and Financial Affairs has issued a new amending order on 13 May 2020, thereby extending the period of suspension of the merger control time limits until 8 June 2020.

Updated 9 June 2020: Suspension of merger control time limits extended until 17 August

On 3 June, the Danish Minister for Industry, Business and Financial Affairs issued a new amending order, thereby extending the period of suspension of the merger control time limits until 17 August 2020. The amending order entered into force on 7 June 2020. In connection herewith, the Danish Competition and Consumer Authority (the "DCCA") announced that it would assess on a continuous basis, whether the normal time limits could be reinstated. The DCCA continues to encourage companies that wish to merge to contact the authority well in advance.