Prospectuses: ESMA consults on risk factors and exemptions for takeovers, mergers and divisions

On 13th July 2018, the European Securities Markets Authority (ESMA) launched two public consultations under the new Prospectus Regulation (PR).

ESMA is seeking stakeholders’ views on the proposed technical advice on exempt documents produced for the purpose of offers/admission of securities connected to a takeover, merger or division. In addition, ESMA is seeking stakeholders’ views in relation to its proposed guidelines on risk factors.

In particular, the first consultation paper contains draft technical advice on the minimum content of a document published in the context of offers/admission to trading of securities related to takeovers, mergers, and divisions while the second one sets out draft guidelines on risk factors featured in a prospectus.

Next steps
The consultations close on 5 October 2018, and ESMA will deliver the technical advice to the European Commission and publish the final reports by 31 March 2019.