Is China Over-intervening in The M&A of Multinational Corporations?
Is China Over-intervening in The M&A of Multinational Corporations? Some reports suggest China is increasingly looking to have more say in global mergers and acquisitions. Indeed, the China's ministry of commerce (Mofcom) did issue regulations on global mergers and acquisitions. As multinationals become more "multi", they must file for a merger review in a growing list of jurisdictions. Companies file to receive approval for a deal to go through in every country, including China, for which it meets filing requirements. "If you have a global deal, merger or acquisition, or even a new joint venture, it's possible that it could be subject to merger review in as many as 100 countries," says Peter Wang, head of law firm Jones Day's Chinese antitrust division. According to the data, compared with other consolidated jurisdictions, such as European Union, China rarely intervenes in deals. Mofcom has interceded in or blocked only 1.2 per cent of all d...