This was the first case involving a VIE structure that has been formally docketed and unconditionally cleared by the Chinese antitrust authority since its conditional clearance of Walmart’s acquisition of Yihaodian in 2012…
On July 16, 2020, SAMR unconditionally cleared the establishment of a joint venture between Shanghai Ming Cha Ze Gang Management Consulting Co., Ltd. (an affiliate of Mininglamp) and Huansheng Information Technology (Shanghai) Co., Ltd. (an affiliate of Yum China) (the M/H Case). This was the first case involving a VIE structure that has been formally docketed and unconditionally cleared by the Chinese antitrust authority since its conditional clearance of Walmart’s acquisition of Yihaodian in 2012 (for more detail on the Walmart/Yihaodian Case, see the Announcement of the Ministry of Commerce (MOFCOM) on the Decision to Impose Restrictive Conditions on the Concentration of Undertakings of Wal-Mart Stores, Inc.’s Acquisition of 33.6% Equity in Niuhai Holding Ltd., at http://www.mofcom.gov.cn/article/b/g/201209/20120908362132.shtml).
The following is a discussion of the key issues in a merger filing in China involving a VIE structure.
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