IBA takes new merger initiative

The International Bar Association has started an initiative to draw up an agreement to cover all cross-border mergers.

The International Bar Association aims to cut deal costs that have become enormous because of the paperwork involved.

According to the International Bar Association, global merger activity was worth around $2 trillion (£1.4 trillion) in the first half of 2000. To support its case, the International Bar Association cites the example of a deal between Alcan, Pechiney and Alusuisse in France that cost £100,000 in agency fees with merger notifications filed in more than 40 countries and with more then 35 firms providing anti-trust advice.

Chairman of the International Bar Association for Business Law William Roley says: "The viral growth of national merger review systems means that 10 years ago we had one, now we have 65 with a further 20 formation systems and the US now recognises this problem and the IBA has advocated a multilateral approach."