There did not used to be much interest in antitrust merger regulations in the banking industry due partly to the fact that no cases in the industry had been prohibited under these regulations. However, since 2017, the prolonged nature of merger reviews for the integration of regional banks in Nagasaki and Niigata prefectures showed the need for companies to seek the best strategies to comply with merger regulations when conducting M&A projects between financial institutions. The Financial Services Agency has supported mergers against a backdrop of negative interest rates, a downturn in local economies and entries into the industry from other sectors, etc., and there has been increasing M&A activity among regional banks. However, disregarding merger regulations while proceeding with M&A projects carries huge risks, in light of Japan's experience in previous cases.

Antitrust merger regulations can pose significant obstacles to the timely closure of M&A, while regulation content is highly specialized, making it difficult to grasp the overall picture. When conducting M&A, it is a good idea to consider the preparations, such as gaining an in-depth understanding of merger regulations in advance; looking at regulatory risks and guidelines for complying with merger reviews; and considering the possibility that an M&A project may need to be altered.

The speakers are affiliated with NERA, which has provided support services for merger reviews based on economic analysis in numerous deals that have involved antitrust merger regulation. Making use of this expertise, the lecture was aimed at legal and corporate planning officers at financial institutions (particularly regional banks), and lawyers, and explanations were given on the content of procedures and merger guidelines, while examining the latest trends in reviews/decisions and relevant case studies, as well as the significance of economic analysis, which has become of great importance recently, and how to use such analysis.

A lecturer involved in merger regulation for 15 years presented the latest version of his experience and expertise in the field.

1. Summary of antitrust merger regulation
2. Latest trends in merger reviews
3. Key points in responding to merger reviews for financial institutions
4. Use of economic analysis
5. Procedures for merger reviews: Pre-notification consultation and the review process
6. Prescribed areas of trade
7. Analysis of competition (substantive decision on competition)
8. Measures to resolve issues (to eliminate substantial restrictions on competition)

Question and Answer session