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Study on the application of Directive 2004/25/EC on takeover bids

The European Commission has commissioned Marccus Partners and the Centre on European Policy Studies to carry out a study on the functioning of the Takeover Directive. Questionnaires have been sent to experts and different groups, including worker representatives.

Trade unions have been asked to report on (among other things) the impact of the takeovers on employment levels and working conditions, and whether the rights in the Directive are adequate to protect the workers interests. The Takeover Directive was implemented under the assumption that takeovers are generally good for improving the companies’ performance and for increasing the efficiency of the economy. However, the majority of studies show that takeovers as a whole fail to lead to better performance. There is a negative average impact on employment and the quality of information and consultation provided to workers during takeovers is quite deficient. Recently, the public outcry over the breaking of promises regarding production locations and employment by Kraft after it had taken over Cadburys led to a revision of the UK Takeover Code involving a strengthening of worker rights.

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