By Susan Ning, Zheng Ziqing and Wu Han

On March 12, two Chinese Internet video giants Youku and Tudou announced that the two companies have signed a final agreement on March 11 to combine their services in a 100% stock-for-stock transaction to create a new service provider, Youku Tudou Inc, allowing Tudou to exit the stock market.

After the combination, Youku’s shareholders and holders of its American Depository Receipts (ADRs) will have 71.5% of equity of the new company, with Tudou’s shareholders and its ADR holders entitled to 28.5% of the combined equity. Youku’s ADRs, under the symbol of "YOKU", will continue to be listed on the New York Stock Exchange.Continue Reading Launch of Youku Tudou Inc.

By Susan Ning, Sun Yiming and Liu Jia

On December 7, the Provisional Measures on Investigating and Penalizing Violation of Notification Obligations for Concentrations between Business Operators (Provisional Measures) were reviewed and discussed at the No. 57th Ministerial Affairs Meeting of the Ministry of Commerce (MOFCOM) and were passed in principle.1  

It was discussed at the meeting that currently companies frequently ignore their merger control notification obligations under the Anti-Monopoly Law which has caused negative social impact.  Under such circumstances, the Provisional Measures are expected to strengthen MOFCOM’s enforcement in relation to investigation and punishment for those companies who fail to honor their notification obligations.Continue Reading MOFCOM Passed Provisional Rule on Failure to Notify on Concentration

By Susan Ning, Shan Lining and Angie Ng

Pursuant to the Anti-Monopoly Law, transactions which are construed as "concentrations" (i.e. mergers, acquisitions and joint ventures) and which meet with specified turnover thresholds 1; must be notified to, and cleared (from an antitrust law perspective) by MOFCOM, before business operators can go ahead with these transactions (notifiable concentrations). Continue Reading MOFCOM publishes draft rules on investigation procedures re failure to notify on concentrations