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Anti-monopoly examination of the merger and acquisition in China

Time:2014-03-13 Hit:915

Anti-monopoly examination of the merger and acquisition in China

Antimonopoly examination on foreign acquisition of Chinese enterprises may be triggered if:

1. Any party to the merger has a sale turnover on Chinese market exceeds RMB 1.5 billion in the current year;

2. More than ten enterprises in related industries have been acquired within one year;

3. The market occupancy ration of the party who mergers a domestic enterprise has reached 20% in China;

4. The merger leads to the fact that the market occupancy ration of one of the parties to a merger has reached 25% in China

The parties to the merger and acquisition that meets the criteria for anti-trust review shall report the transaction plan to the authority in charge unless such anti-monopoly examination is exempted if:

1. The mergers and acquisitions can improve conditions for fair competition;

2. The mergers and acquisitions can initiate restructuring of a loss-making enterprise and assure employment;

3. Through the transaction, the advanced technologies and management talents will be introduced to China, and the competitiveness of the enterprise will be improved;

4. Mergers and acquisition can improve the environment

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