A concentration is a structural connection between two or more companies that is usually organized under corporate law. The German Competition Act defines different types of notifiable concentrations:
- Acquisition of assets. The acquisition of all or of a qualitative relevant part of the assets of another undertaking.
- Acquisition of control. The acquisition of direct or indirect sole or joint control over all or a part of one or more other undertakings. Control means the possibility of exercising decisive influence over a company, either positively or by way of blocking rights.
- Acquisition of shares below the level of control. The acquisition of shares in one or more undertakings if the shares alone or together with shares already held respectively reach at least 25% or 50% of the capital or voting rights of the target company, regardless of whether this confers control.
- Acquisition of competitively significant influence below a 25% shareholding. In some cases, even the acquisition of a non-controlling shareholding below 25% may constitute a concentration if the minority shareholding together with other factors (such as board seats, information rights, or long-term agreements) result in a position which is equivalent to a shareholding of at least 25%.