Communicate early and often with antitrust authorities

To successfully get through an anti-monopoly review, investors must seize the right timing and adopt an appropriate communications strategy in dealing with regulators, say counsel.

Chinese regulators have approved Diageo's acquisition of an additional 4% shares in Sichuan Chengdu Quanxing Group, the largest shareholder of Shuijingfang. The Rmb140 million (US$21.63 million) transaction, once completed, will increase Diageo's holding to 53%.

The acquirer, a UK-based beverages company, is also awaiting approval for the required mandatory tender offer for the outstanding shares of Shuijingfang. If successful, the deal would be the first foreign takeover of a mainland Chinese-listed company other than a financial institution.