Allow enough time to prepare a pre-merger report

    September 16, 2011 | BY

    Janice Qu

    New provisions provide competition notification guidance

    Early preparation of a pre-merger notification report is a primary matter addressed by new measures to bring business concentration activities in line with the antitrust review.

    The Ministry of Commerce (Mofcom) released new regulations on September 5 relating to the evaluation of the competitive impact of business concentration activities of mergers and acquisitions. The Tentative Provisions for the Assessment of the Competitive Effects of Concentrations of Business Operators (关于评估经营者集中竞争影响的暂行规定) (Evaluating Rules) were adopted to implement Article 27 of the PRC Anti-monopoly Law (中华人民共和国反垄断法) (the AML) and provide guidance for businesses on the notification of concentration.

    Henry Chen, a Shanghai-based partner at MWE China Law Offices has seen important ramifications for companies contemplating transactions that might have a significant nexus with the Chinese marketplace.

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