The Provisions on the Takeover of Domestic Enterprises by Foreign Investors ("Old Rule") and the accompanying pre-merger filing system have been in effect for five years.  According to available government statistics, there have been more than 500 pre-merger filings under that regime.  The new Anti-Monopoly Law ("AML") became effective on August 1st, requiring new implementing regulations and thresholds.  MOFCOM is at the end stage of preparing its new Rules on Notification of Concentration by Undertakings ("New Rule") to support the AML, and the new thresholds triggering required pre-merger filings will soon be announced.

Continue Reading New Thresholds of Pre-merger Filing in China

When the world’s largest steel company Arcelor Mittal acquired a 28% stake in steel company China Oriental Group in November 2007, it made no secret of its desire to gain control of China Oriental and aggressively expand into the Chinese market.  That dream, however, became short-lived.  On May 13, 2008, Arcelor dropped its takeover bid of China Oriental after the deal failed to clear the Chinese anti-monopoly authority in the required six months.

Continue Reading Antitrust Process Leveraged to Prevent Foreign Ownership of Steel Companies

The Anti-Monopoly Law  (“AML”) will come into effect soon and accompany the approaching Beijing Olympics.  As preparation for this highly significant law, the Implementation Rules of the AML (“Implementing Rule”) have been extensively discussed within the anti-monopoly authorities.  These Implementing Rules will be an essential part of implementing and enforcing the AML.  In particular, the Implementing Rules are expected to clearly define several vague clauses of the AML.  Among these vague clauses, the right to file the private anti-monopoly litigation has received substantial attention from many leading multi-national companies in various industries.

Continue Reading Litigation Risks of Multi-Nationals Under China Anti-Monopoly Law