ChinaFIG - Part 2 - Special Approval Related to Large Transactions – Monopolies, Article 53
China’s premier firm for advising on examination exemption, (Part 2) relating to your China merger acquisitions. We assist you with China business, China incorporations, China tax, China investment and your own China accountant, working for you
Part 2 - Special Approval Related to Large Transactions – Monopolies, Article 53
In the event a transaction involves any of the items noted below, the buy-side party is required to provide an acquisition plan to the Ministry of Commerce (MOFCOM) and the State Administration of Industry(SAIC), prior to making a public notification or concurrently with a submittal of notification to the appropriate government body from its home country. MOFCOM and SAIC will determine if the transaction will create a dominant position in the Chinese market, which hampers competition and negatively impacts consumers, and make a determination as to if approval will be granted.
1. any of the participants involved in the acquisition of assets by a Foreign Party, holds assets in China with value greater than 3Billion RMB;
2. any of the participants involved in a Foreign Party acquisition had revenue in China, in the most recent year, of greater than 1.5Billion RMB;
3. any of the participants (or related parties) involved in a Foreign Party acquisition in which they already hold greater than 20% of a certain Chinese market;
4. an acquisition by a Foreign Party which will result in any of the parties (and related parties) to hold Chinese market share achieve 25% or more;
5. an acquisition by a Foreign Party will result in direct or indirect control of more than fifteen FIEs in a related industry.
!