Is there a particular exchange rate required to be used for turnover thresholds and asset values?

Merger Control (4th edition)

Austria Small Flag Austria

The creation of a joint venture – that is an undertaking being jointly controlled by at least two other undertakings – performing on a lasting basis all the functions of an autonomous economic entity qualifies as a concentration under Austrian law. Such joint ventures are also referred to as so-called full-function joint ventures. Similar as under the EUMR, a full-function joint venture has to be economically autonomous, permanent and must not fulfil only auxiliary functions. The joint venture must have sufficient resources to operate independently on a market in order to conduct its business activities on a lasting basis. Moreover, it must be involved in activities beyond one specific function for the parent companies.

If two undertakings gain joint control over an already operating target company, this can as well qualify as concentration (see the above elaboration on what transactions are concentrations under Austrian law). The full-function test is in such cases not a requirement to have a concentration.

China Small Flag China

In normal circumstances, the average of the central parity rates of the corresponding accounting year published by the People's Bank of China should be used to convert turnover in foreign currency into Chinese Yuan.

Cyprus Small Flag Cyprus

All turnovers and asset valuations are 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 and asset valuations in currencies other than the euro is the average conversion rate of the financial year concerned.

Denmark Small Flag Denmark

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 2018 were EUR 100/DKK 745.32 and USD 100/DKK 631.46.

EU Small Flag EU

Typically, the average yearly European Central Bank exchange rate for the financial year to which the provided turnover information refers should be used.

France Small Flag France

French merger control rules do not provide for a specific exchange rate.

In practice, it is usually referred to the average rate for the year concerned, published in the Monthly Bulletin of the European Central Bank (ECB).

Germany Small Flag Germany

The Federal Cartel Office accepts only the average exchange rate of the European Central Bank.

India Small Flag India

The rate of conversion of foreign exchange currency into Indian Rupees or US Dollars is based on the average spot rate of the last six months quoted by Financial Benchmarks India Ltd. (FBIL) from the date calculated with reference to the ‘trigger event’ leading to the filing of a notification. The spot rates as published by the FBIL are available here:

Ireland Small Flag Ireland

The CCPC does not specify the Euro conversion rates to be used in relation to the calculation of turnover, but generally follows the European Commission’s approach to the calculation of exchange rates for the purposes of the EUMR (i.e. by reference to the average rates published by the European Central Bank for the relevant period).

Israel Small Flag Israel

Applicable exchange rates are the average exchange rates over the relevant period; normally the financial year preceding the transaction. If representative rates from the Bank of Israel are available for the relevant currency, these will be the determining rates for calculation of the turnover thresholds.

The average Bank of Israel representative rates for FY2018 were:

- US Dollars 3.5949 NIS = 1 USD
- Euros 4.2452 NIS = 1 EUR

South Korea Small Flag South Korea

The exchange rate as of the end of the year immediately preceding the fiscal year of the merger is applied to the total assets, paid-in capital, and total shareholders’ equity. Meanwhile, the average exchange rate of the immediately preceding fiscal year is applied to the total turnover and net profit.

Mexico Small Flag Mexico

The applicable currency is Mexican pesos. The legal competition framework states that transactions in other currencies should be converted to Mexican pesos for purposes of the thresholds.

Norway Small Flag Norway

Yes. The official exchange rate of Norges Bank (the Central Bank) is applied by the NCA.

Philippines Small Flag Philippines

The PCC’s Guidelines on the Computation of Merger Notification Thresholds state that if the financial statements of an entity are presented in a functional currency other than Philippine Pesos, the annual gross revenues from sales in, into or from the Philippines or the value of the assets in the Philippines of an entity shall be converted to Philippine Peso according to the average, over the twelve (12) months of that financial year, of the foreign exchange rate quoted by the Philippine’s central bank, the Bangko Sentral ng Pilipinas (“BSP”).

Portugal Small Flag Portugal

The PCA’s practice has been to request that parties convert foreign currencies into euro using the average rate for the relevant twelve-month period, as determined by the European Central Bank, and in line with the Commission Consolidated Jurisdictional Notice.

Russia Small Flag Russia

The official exchange rates determined by the Central Bank of the Russian Federation are used to convert foreign currencies into rubles. For most currencies, the rates are deter-mined on a daily basis. The official rates are available on the website of the Central Bank of the Russian Federation ( With respect to data submitted to FAS, as a rule the exchange rate as of the last date of the relevant accounting period (usually the calendar year, i.e. 31 December) is applied.

Sweden Small Flag Sweden

The European Central Bank exchange rate should be used for the calculation of turnover thresholds included in section 6.

Switzerland Small Flag Switzerland

Turnover in foreign currencies shall be converted into Swiss francs.

In practice, the annual average exchange rates based on the exchange rates provided by the Swiss National Bank are used for the conversion.

Peru Small Flag Peru

Law N° 26876 does not have specific provisions on the exchange rate required.

Also, the Bill does not establish anything in this regard.

Turkey Small Flag Turkey

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 2018, applicable exchange rate to be used is 1 EUR= TL 5.68, 1 USD= TL 4.83.

United Kingdom Small Flag United Kingdom

The CMA accepts the use of European Central Bank (ECB) exchange rates.

For the 2018 calendar year, GBP 1 = EUR 1.13 = USD 1.335.

ECB annual exchange rates for EUR / GBP and EUR / USD conversions are available at the ECB's website.

Ukraine Small Flag Ukraine

Foreign currency shall be converted into EUR according to the exchange rate of the currency in the previous year. The exchange rate is officially published by the National Bank of Ukraine as a basis for the appropriate calculations.

United States Small Flag United States

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 calculated

Italy Small Flag Italy

Foreign currencies shall be converted into Euro with the average exchange rate of the reference year (generally referring to European Central Bank data).

Greece Small Flag Greece

There is no particular exchange rate to convert other currencies into Euros. Where necessary, the average exchange rates of the European Central Bank are used by the HCC.

Updated: November 11, 2019