G: COMPETITION ISSUES1: RESTRAINT OF TRADE65 GeneralIn a takeover situation, a buyer will wish to protect the goodwill of the target company to be acquired and should therefore consider imposing restrictive covenants on the sellers1. Similar considerations may apply in certain types of demergers. Restrictions may, however, be challenged on public policy grounds if they are found to be in restraint of trade.
In a takeover situation, a buyer will wish to protect the goodwill of the target company to be acquired and should therefore consider imposing restrictive covenants on the sellers1. Similar considerations may apply in certain types of demergers. Restrictions may, however, be challenged on public policy grounds if they are found to be in restraint of trade.
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