Gun-jumping risks for phased M&A transactions

July 13, 2017 | BY

Katherine Jo &clp articles

DLA Piper

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Nathan Bush & Ning Qiao

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Disciplining companies for failing timely to report mergers, acquisitions, and joint ventures for mandatory antitrust review under the PRC Anti-monopoly Law (AML) is now an enforcement priority for the Ministry of Commerce (MOFCOM). Recent penalty decisions highlight the risks of failing to obtain MOFCOM clearance for phased acquisitions before proceeding with the initial transactions.

China—like the U.S., EU, and many other jurisdictions—has a mandatory, suspensive merger review regime. If a transaction satisfies the qualitative definition of