FTI Consulting, particularly through its subsidiary, Compass Lexecon has provided expert advice and testimony in hundreds of complex antitrust actions and M&A transactions during the last 30 years. We apply cutting-edge industrial organisation theory and use sophisticated economic and econometric analyses to dissect and define the complex issues that are found in these engagements. We have evaluated proposed mergers and acquisitions on behalf of both government agencies and private entities. Using rigorous, state-of-the-art analytical methods applied to complex data, we evaluate the likely effects of proposed mergers and acquisitions on prices, costs and competition. Our professionals also regularly assist both defendants and plaintiffs in antitrust litigation, including cases involving price fixing, predatory pricing, bundling and various forms of allegedly exclusionary conduct. An integral part of our role in many of these cases involves the estimation of lost profits or damages from elevated prices and output restrictions.
Our Service Offerings
Companies can distort fair competition by cooperating with competitors, for instance by fixing prices or dividing the market so that each company has a monopoly in part of the market. On behalf of our clients — energy companies, regulators, or even governments, our subsidiary, Compass Lexecon has professionals to investigate those companies suspected of collusive behaviour. Our credentials are without peer. Because we have top professionals in competition economics and energy economics, we can study the market characteristics and market outcomes to assess whether the market is prone to reaching and sustaining a cooperative agreement. We analyse whether cooperation is harmful to competition, we can assess the actual degree of harm, and we can analyse whether there are pro-competitive effects that could not be reached without the agreement.
European governments are not permitted to provide financial assistance to their national companies or, if they are, it is subject to very strict scrutiny and requirements in order to minimise their impact on competition in the single European market. Our subsidiary, Compass Lexecon has professionals to provide support in the economic analysis required by wholesale energy companies or governments seeking State Aid clearance from the European Commission. Our economists have significant experience in advising parties seeking State Aid clearances, for instance by testing whether financial support is consistent with the European Commission’s economic principles for State Aid measures, and in assessing the impact of proposed arrangements.
Approval for an upstream oil and gas merger in Europe comes from either the European Commission or a national authority. FTI Consulting is often involved in such mergers because we offer a unique combination of competition economics and energy industry expertise. Our weight of expertise is a key advantage given the tight timetable of merger proceedings.