Did Lloyds/HBOS Mark the Failure of an Enduring Economics Based System of Merger Regulation?
University of East Anglia (UEA) - Centre for Competition Policy
July 1, 2011
Northern Ireland Legal Quarterly, 2011
UK Merger control is an example of regulation which has shifted from a public interest regime to an economics based system of competition assessment. This paper asks whether the merger of Lloyds TSB and HBOS in 2008, on public interest grounds, marked the failure of an enduring economics based system of merger regulation. It argues that far from marking a failure, the Lloyds TSB/HBOS merger highlights the importance of only allowing public interest interventions on exceptional grounds in specific industries. Economics based merger control is transparent and preferable to general public interest assessments, which are unpredictable and open to abuse.
Number of Pages in PDF File: 16
Keywords: Mergers, Public Interest, Financial Crisis, Lloyds TSB, HBOS
JEL Classification: K21, G21, G33, G34
Date posted: September 20, 2011