Is there a particular exchange rate required to be used for turnover thresholds and asset values?
Merger Control (2nd Edition)
The CMA accepts the use of European Central Bank (ECB) exchange rates.
For 2016, GBP 1 = EUR 1.22 = USD 1.351.
ECB annual exchange rates for EUR / GBP and EUR / USD conversions are available at the ECB's website.
Foreign currency shall be converted into EUR using the average exchange rate of the reference year (data published by the European Central Bank are typically used).
While the HSR Act does not have codified rules regarding the use of exchange rates when determining whether the HSR Act’s thresholds have been met, the FTC has issued general guidance regarding foreign currency conversions. The FTC recommends that parties use the Interbank Exchange Rate and follow certain guidelines:
- For an annual statement of income - use the average exchange rate for the year reported
- For a regularly prepared balance sheet - use the exchange rate in effect for the date on the balance sheet
- For a pro-forma balance sheet - use the exchange rate for the date the pro-forma balance sheet is created
- For the acquisition price - use the exchange rate for the date of closing
- For a fair market value - use the exchange rate for the date the fair market valuation is created
The Federal Cartel Office accepts only the average exchange rate of the European Central Bank.
A corporation should calculate turnover with the exchange rate that the corporation applied in its financial statements for the relevant accounting period. If a corporation does not have such rates, it may apply the average exchange rate for the relevant accounting period calculated from publicly available rates.
Turnover has to be converted into Euro at the official exchange rate, i.e. the European Central Bank’s official exchange rates for the last business year. Thereby, the annual average rate has to be used. The exchange rates can be found on the website of the European Central Bank.
The conversion into Canadian dollars of the gross revenues from sales reported in foreign currency must be based on the noon exchange rate quoted by the Bank of Canada on the last day of the annual period for which the gross revenues from sales are determined in accordance with the Act. This is generally the annual period covered by the most recent audited financial statements in which the gross revenues are accounted for.
The conversion into Canadian dollars of the aggregate amount of assets reported in foreign currency must be based on the noon exchange rate quoted by the Bank of Canada on the last day of the period covered by the most recent audited financial statements in which those assets are accounted for.
As of March 1, 2017, the Bank of Canada has stopped publishing the noon exchange rate and instead publishes a single “indicative” rate for each currency pair that it tracks at 4:30 p.m. every day. This indicative rate is to be used for the conversion into Canadian dollars going forward.
Turnover thresholds are in UF, which is a unit established by the Chilean Central Bank and changes according to inflation. To convert UFs into CLPs, it shall be considered the value of the UF on December 31st of the financial year preceding the transaction.
The exchange rate to be used to convert sales made in another currency to CLPs corresponds to the average annual exchange rate published by the Chilean Central Bank for the year preceding the transaction..
The applicable exchange rates for EUR and USD to CLP for 2016 are the following:
(i) 1 EURO = $749.19 CLP
(ii) 1 USD = $676.83 CLP
All turnovers represented in the context of a notification of a concentration under Cyprus law must be in euro. Figures are derived from the last audited financial statements. The applicable exchange rate for turnovers in currencies other than the euro is deemed to be the one applicable at the time of calculation of the thresholds.
Turnover, including assets, calculated in foreign currency is to be converted into Danish currency (DKK) according to the average exchange rate in the company’s most recent financial year.
The average applicable exchange rates in 2016 were EUR 100/DKK 744.52 and USD 100/DKK 673.27.
Conversion of currencies into Euros should be done at the official average exchange rates for the relevant financial year (twelve month period) as published by the European Central Bank (ECB).
There is no binding exchange rate applicable. However in practice, the European central bank yearly average rate is frequently used.
Maltese law is silent on the exchange rates to be used when calculating turnover arising in Malta which is not denominated in Euro. The OFC’s policy is to invite the notifying undertaking to submit its calculations and explanations as to the rate adopted, which is generally the historic rate issued by the European Central Bank as at the date of the preceding financial year. The OFC will then cross-check this rate and confirm if acceptable or not.
There are no mandatory sources of exchange rates for the purpose of merger notification. Both Norges Bank's (the Norwegian central bank) published rates and those of the ECB may be used. Norges Bank's average exchange rate from NOK to Euro was 8.9530 in 2015 and 9.2899 in 2016 (NOK/EUR). Other exchange rates can be found at Norges Bank’s website: http://www.norges-bank.no/en/.
The exchange rate required to be used for the purposes of the jurisdictional thresholds is the exchange rate published by the National Bank of Romania for the last day of the financial year preceding the economic concentration. The exchange rates for the last day of the financial year 2016 are the following: 1 EUR = 4.5411 RON; 1 USD = 4.3033 RON (RON is the Romanian national currency).
KN: The applicable exchange rates are the official median rates of the National Bank of Serbia. Serbian local currency is dinar (RSD). These exchange rates are updated daily and are available on the website of the NBS:
With respect to the calculation of the turnover thresholds, the applicable exchange rate is the median exchange rate on 31st of December (or the last available) of the relevant year.
On 30 December 2016, EUR/RSD median exchange rate was: EUR 1 = RSD 123.4723
On 30 December 2016, EUR/RSD median exchange rate was: EUR 1 = RSD 117.1353
The relevant exchange rate for turnover and assets is typically the average exchange rate for the relevant accounting period to which these values relate.
For converting the annual turnover of an undertaking in foreign currency to TL, average buying rate of exchange of the Central Bank of Turkey for the financial year the turnover is generated is taken into consideration as the rate of exchange.
For 2016, applicable exchange rate to be used is 1 EUR= TL 3.34, 1 USD= TL 3.02.
The values of assets and turnover are calculated based on the official exchange rates set by the Ukrainian central bank (the National Bank of Ukraine) as of 31 December of the relevant year. As of 31 December 2016, the exchange rates were as follows: USD1 corresponded to UAH27.190858, EUR1 corresponded to UAH28.422604.
The law and CADE’s regulations do not regulate this subject. However, previous CADE’s decisions have already established that the exchange rate to be taken into account to verify the parties’ revenue is the one in place in December 31st of the previous year (as Brazil adopts a floating exchange rate system).