Environmental Liabilities in M&A Transactions

May 23, 2019


The “polluter pays” principle provides that the polluter should bear the costs of so-called “environmental liabilities.”

In the M&A context, the allocation of environmental liabilities becomes problematic when a polluted site is transferred following mergers, demergers, or assignment of the going concern. The analysis of recent civil and administrative judgments may help identifying certain criteria upon which Italian courts allocate environmental liabilities. We analyzed together these criteria, and discussed what impact they may have on business strategies and negotiations involving target companies facing potential or actual environmental issues.  Mr. Pizzagalli, legal counsel of Basf Italia S.p.A., also shared his experience.

The seminar was part of the Cleary Corporate Breakfast series at the Rome and Milan offices.