401. Mergers in accordance with the European Mergers Directive.

The Treasury may by regulations make provisions about the tax consequences of:

  1.  

    (1)     a merger to form an SE1 or an SCE2;

  2.  

    (2)     a merger each party to which is resident in a member state (but not all are resident in the same member state);

  3.  

    (3)     a merger between companies of a business, or part of a business, where each party to the transfer is resident in a member state and not all the parties are so resident;