konzern

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A concern (German: Konzern [kɔnˈtsɛʁn] ) is a type of business group common in Europe, particularly in Germany. It results from the merger of several legally independent companies into a single economic entity under unified management. A concern consists of a controlling enterprise and one or more controlled enterprises. The relationship between the controlling and controlled enterprises is based on the actual commercial and management relationships, unlike parent and subsidiary companies which are related by share ownership and voting rights. Outside of professionals, the term Group, also mistakenly within the meaning of large companies – regardless of its corporate structure – is understood. The Group concept has antitrust relevance: the so-called Group privilege, the privilege of the consolidated Group companies involved, means that in itself, prohibition included practices that do not violate German or European Commission (EC) antitrust law. On the other hand, the Group concept in the Banking Act is to the formation of a borrower unit to access large credit facilities.