Emerging Policies in China’s Merger Control Process: MOFCOM’S Continued Focus on Far-Reaching Conditions


I. Introduction -

In April 2013, two keenly awaited MOFCOM merger decisions illustrated China’s continued focus on utilising far-reaching behavioural conditions, especially in commodity transactions, which aim to strategically protect supply into China.

These recent conditional approvals, namely Marubeni/Gavilon, and Glencore/Xstrata, involved significant behavioural conditions being imposed, notwithstanding the fact that neither of the transactions in question resulted in very high market shares in China. They did, however, involve potentially sensitive sectors which require high levels of supply of primary resources into China, highlighting the importance of national interest and strategic industrial policy goals in MOFCOM's merger review process. While some previous merger decisions have been criticised for lack of reasoning, it is clear that MOFCOM is now moving towards a more transparent approach in its merger control review process, in terms of guidance, providing a more comprehensive analysis in merger decisions, and publishing a full text of the conditions it has accepted.

This alert considers the implications of MOFCOM’s emerging policy imposing far-reaching behavioural conditions, which can be expensive to implement and monitor. In addition to examining these recent cases in more detail, it assesses other similar recent conditional approvals, analysing the potential effects for future international M&A transactions involving Chinese merger review from a practical perspective.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© K&L Gates LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.