To the Multiverse of Arbitration by Consolidation of M&A Arbitration Proceedings

7 Baku St. U. L.Rev. 231 (2021)
Article language: English.


With the growing number of M&A transactions, the disputes related to them also surge. M&A disputes sometimes pave way for the parallel proceedings, which have a high risk of having inconsistent awards from different tribunals. The article discusses the application of consolidation in M&A arbitration to avoid such awards and the current issues hindering the consolidation of arbitral proceedings. For creating a clear picture of the situation, firstly, we analyzed the different stages of M&A arbitration and specific types of disputes, which can arise in these stages. The advantages and the problems of consolidation have been explored in the second part of the article for the determination of the main problem and the possible solution for the consolidation of proceedings. The assessment of the current problems reveals that every impediment on the way of consolidation has simple solutions to be applied, except the explicit choice of different institutional rules by the parties in an arbitration agreement. The current issue of having different institutional rules being applied to M&A disputes has been researched and the possibility of further cooperation among institutions has been analyzed. It became evident that the choice of an arbitration institution and its applicable rules are specifically vital for M&A transactions, which have complicated nature due to the corporate structure of parties and chain agreements. The article concludes that the enhancement of cooperation among arbitration institutions is needed for the development of consolidation. Such an approach will make consolidation more accessible for parties and easier to apply.

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