There are some factors that explain clearly the problems being faced in the process of cross-border mergers in the financial sector in Europe & other parts of the world, and when analysed, this draws a list of potential obstacles to cross-border mergers, for instance, the hurdles that would make a cross-border merger very difficult and impossible in other words. Speaking about the financial sector the focus is mainly put on the distinguishing factors between market segments when relevant.
“Obstacles to consolidation in general (i.e. obstacles that impede domestic consolidation as well) are not covered. Obstacles to forms of integration other than cross-border M&As (such as direct cross-border provision of services) are also out of the scope of this paper, even though some obstacles might be relevant for different channels of integration.
This list is aimed at providing all possible explaining factors, in order to serve at a later stage as a base for discussion on which of those obstacles should, and could, be removed in order to achieve the objective of improving the functioning of the Internal Market for financial services. It is not a policy paper, but a first analysis of the explanations behind the facts discussed” (Cartwright, et.al, 2006. P98).
The British company that has business in the UK and that wants to work in the European Union or Europe can adopt one structure instead of moving the whole business there i.e. merging or reorganising to that place in Europe.
These rules and regulations are for those companies that want to merge together or want to make a joint venture between each other. This way the Managers in the UK are relying more on the mergers and they are considering it as a positive change to their business and they take it as a bright sign for their future businesses.
This is the cleanest way of doing business together of