What are the potential environmental impacts of a merger or acquisition?

Mergers and acquisitions (M&A) involve two companies combining in some form or fashion, and this process usually has an impact on the environment. For instance, a merger or acquisition could lead to one company taking over the other company’s production facilities, which may cause pollution due to the production process or the disposal of materials used in production. Another environmental impact of an M&A is the result of the merged companies taking on a larger market share than before, leading to more resources being used in production and potential increases in emissions. In New York, the New York Department of Environmental Conservation (NYDEC) must vet mergers and acquisitions to identify potential environmental harms. Companies must submit a detailed environmental assessment with their application for the merger or acquisition; the NYDEC reviews this and any other information that could reveal potential environmental impacts. The NYDEC may also require additional steps to mitigate any potential environmental harms of the merger or acquisition. For example, if the merger or acquisition would lead to higher emissions, the NYDEC may require the company to commit to reducing emissions in other areas or to use renewable energy sources. Overall, companies in New York must be aware of the potential environmental impacts of a merger or acquisition and take steps to mitigate any harm. The NYDEC’s regulations may help ensure that companies take the proper steps to minimize these impacts.

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