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

Merger Control

China Small Flag China

Usually, when translating the turnover in foreign currencies into Renminbi, the average of the central parity rates announced by the China Foreign Exchange Trading Centre supervised by the People’s Bank of China for the relevant fiscal year shall be applicable.

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 2015 were EUR 100/DKK 745.85 and USD 100/DKK 672.69.

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 EU Merger Regulation (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 coin, these will be the deciding rates for calculation of the turnover thresholds.

The average Bank of Israel representative rates for FY2015 were:

  • US Dollars - 3.8869 NIS per 1 USD
  • Euros - 4.3144 NIS per 1 EUR

Japan Small Flag Japan

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.

Malta Small Flag Malta

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.

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 2015, applicable exchange rate to be used is 1 EUR= TL 3.02, 1 USD= TL 2.72.

Ukraine Small Flag Ukraine

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 2015, the exchange rates were as follows: USD1 corresponded to UAH24.000667, EUR1 corresponded to UAH26.223129.

United States Small Flag United States

The HSR Act does not have formal rules regarding use of exchange rates when determining whether its thresholds have been met. However, the FTC has issued guidance on performing currency conversions. The FTC recommends using the Interbank Exchange Rate when converting foreign currencies to dollars. When calculating annual net sales, apply the average exchange rate over the fiscal year reported. When calculating total assets, apply the exchange rate as of the date of the balance sheet.

Russia Small Flag Russia

There are no specific rules in place as to the exchange rates for calculating assets and turnover estimated in currency. In practice, 31 December of the relevant year has been commonly used for this purpose.

In particular, the 31 December 2015 exchange rates as per the Russian Central Bank are as follows:

  • 1 US dollar was equal to RUB 72.8827;
  • 1 EURO was equal to RUB 79.6972.

Other options including calculating of average exchange rate or calculating such rate on the execution date also may be considered under specific circumstances.

United Kingdom Small Flag United Kingdom

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

For 2015, GBP 1 = EUR 1.378 = USD 1.529.

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

Belgium Small Flag Belgium

The law does not prescribe a specific exchange rate that must be used to convert other currencies into Euros. In practice, parties should rely upon the European Central Bank’s annual mean conversion rate for the relevant period.

Austria Small Flag Austria

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.

South Africa Small Flag South Africa

For the purposes of the both the turnover and asset value calculations, the Commission in a 2010 Practice Note has recommended in the case of an international merger, that the parties use an average exchange rate based on their audited financial statements for the most recent accounting period.

For the 2015 calendar years, the average Rand/Euro and Rand/USD exchange rates were:

  • 1 Euro = 12.74834 ZAR
  • 1 USD = 14.15144 ZAR

France Small Flag France

No particular exchange rate to convert other currencies into Euros is prescribed by French law.

Mexico Small Flag Mexico

The Regulatory Dispositions of the FECL provide that transactions which are agreed on foreign currency such US dollars, shall be calculated upon the lower exchange rate published by the Bank of Mexico (Banco de México) over a 5 previous day period upon the date of filing.

Likewise, transactions agreed on other foreign currencies that are not US dollars, the Regulatory Dispositions of the FECL provide that any exchange rate indicator that reflects the value of the national currency (Mexican pesos) with respect to the foreign currency can be applied.

Germany Small Flag Germany

Exchange rates are calculated either based on the average exchange rate over the period of the last fiscal year, or the rate at the end of the last fiscal year. The European Central Bank publishes the applicable exchange rate on its website.

For 2016, the average exchange rate USD/EUR was 1.1069.

Italy Small Flag Italy

Foreign currency shall be converted into euros at the average exchange rate for the year to which the amounts are allocated. In 2016, the average exchange rate between euros and US dollars was EUR1 = USD 1.1049 (source: European Central Bank).

Australia Small Flag Australia

Not applicable.

Canada Small Flag Canada

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.

The applicable exchange rates for euros and US dollars to Canadian dollars for the most recent calendar year (2016) are:

1 USD -> 1.3427 CAD
1 Euro -> 1.4169 CAD

Cyprus Small Flag Cyprus

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.

Updated: July 6, 2017