M&A Foundations · glossary

Gun-jumping

The competition-law offence of behaving as the target's owner before completion or before merger clearance — integrating operations early, directing management, or swapping competitively sensitive information. Regulators fine it heavily, which is why pre-completion covenants stop short of giving the buyer control. Chapter 13

Explained in Chapter 13, Signing to Completion, of M&A Foundations.

How it comes up, in Chapter 13
The consent list gives the Buyer a veto over changes; it must never become control of the business. Until the CBI approves, Atlas may not run Solaris — that is the whole point of the condition, and “acquiring control” before approval can itself breach the change-of-control regime. Where merger filings are in play, competition law adds its own prohibition on implementing a deal before clearance, known as gun-jumping, with serious fines attached. Clause 6.3 says it expressly:…
Read Chapter 13, Signing to Completion →

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Where this term lives

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