The Rise of M&A Arbitration


Summary

With cross-border M&A growing from $32 billion in 1985 to over $1.2 trillion in 2019, there is no doubt that there is a global appetite for such deals. While parties involved in M&A transactions generally expect to close deals smoothly and proceed with their respective businesses in peace, reality shows that disputes inevitably arise and parties have to take this into consideration when drafting the deals by opting for either national court litigation or arbitration. M&A arbitration has risen in popularity in parallel to the growth of the deals and can cover all the aspects of a transaction. According to the statistics issued by various arbitration institutions, (i) shareholders' agreements, (ii) share purchase agreements, (iii) and joint venture agreements represent a substantial part of their caseload. For instance, these agreements represent 14% of the cases administered by the LCIA in 2019. According to the SIAC's 2019 Annual Report, corporate disputes amounted to 29% of all ...