merger remedies

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By Susan Ning, Pulcheria Chung, Kailun Ji and Hazel Yin

To increase clarity and transparency on the merger remedy regime under the Anti-Monopoly Law (“AML“), China’s Ministry of Commerce (“MOFCOM“) published the draft Rules Regarding Imposition of Restrictive Conditions on Concentrations of Undertakings (the “Draft Rules“) on 27 March 2013 for public comments. 

Under the AML, MOFCOM may attach restrictive conditions to reduce the negative impact a concentration of business operators will bring on competition in the relevant market.  On 5 July 2010, MOFCOM published the Provisional Rules on Divestiture of Assets or Business to Implement Concentrations of Undertakings (the “Divestiture Rules“) which was the first set of rules specifically dealing with divestiture remedies.  The Draft Rules are intended to cover not only divestiture, but also conduct remedies and will replace the Divestiture Rules once adopted.
Continue Reading Path towards A More Streamlined Merger Control System – MOFCOM Publishes Draft Rules on Merger Remedies

By Susan Ning and Hazel Yin

On June 15, 2012, the Ministry of Commerce (“MOFCOM”) approved the acquisition of Goodrich Corporation (“Goodrich”) by United Technologies Corporation (“UTC”) subject to the divestment of the electronic systems business of Goodrich.  Both companies are headquartered in the United States and active in the production and sale of aviation equipment.  This marks the fourth conditional clearance issued by MOFCOM in the first half of 2012 and the only case where the core remedies are structural.

 Review Process.  MOFCOM received the notification on December 12, 2011 and officially accepted it on February 6, 2012.  A Phase 2 investigation was opened on March 2 and extended on May 31, which was set to expire on July 30. 
Continue Reading MOFCOM Approves UTC’s Acquisition of Goodrich with Divestiture Requirement

By Susan Ning and Huang Jing

On 21 September 2011, Mr. Shang Ming, Director General of MOFCOM’s Anti-Monopoly Bureau revealed the most recent legislative plan of MOFCOM’ at the BRICS International Competition Conference 2011 held in Beijing.

According to Mr. Shang, MOFCOM will promulgate 3 new rules on merger control within this or next year. The 3 new rules are: Rules on Imposing Restrictive Conditions on Concentration of Operators (the "Rules on Remedies"), Rules on the Investigation and Handling of Violation of Notification Obligations for Concentration of Operators (the "Rules on Violation of Notification Obligations"), and Rules on the Investigation and Handling of the Concentration of Operators below the Notification Thresholds with Monopoly Suspicion (the "Rules on Mergers Below Thresholds").Continue Reading MOFCOM to Promulgate Three New Rules on Merger Control