EU proposes new merger rules

The rules governing company mergers have been overhauled by the European Commission after three of its bans were overturned by courts.

"The reforms will significantly improve our merger control system, making it, I believe, a model to be emulated worldwide," EU Competition Commissioner Mario Monti said in a statement.

The Commission hopes the proposals will improve its decision-making process and its defence of decisions in court.

The Commission is also urging that the Court of First Instance be given more resources so companies can get quicker decisions.

The court has criticised the Commission for sloppy rulings and accused it of failing to prove its cases.

Merger guidelines

In October the court ruled that Mr Monti erred in blocking a 1.7bn euro (£1.1bn; $1.7bn) takeover by Swiss based Tetra Laval of France's Sidel last year.

Earlier in the month the court overturned a ban on a merger between two French firms - Schneider and Legrand - and in June reach a similar decision about British travel companies First Choice and Airtours, now called MyTravel.

The new rules will give companies whose deals are under review more rights and the Commission more time to prepare its cases.

The proposals will also allow third parties to lodge objections to mergers sooner.

Guidelines will also be issued for lawyers handling mergers.

The new merger rules must now be approved by the EU's 15 member states.