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28 Aug, 2011

China to review foreign M&A | Policy and Regulation | chinadaily.com.cn

BEIJING – A new regulation issued by China’s Ministry of Commerce (MOC) on Friday states that the government will review mergers and acquisitions of domestic companies by foreign investors for national security purposes.

If any mergers and acquisitions involving foreign investors are determined to be a threat to national security, those deals should be terminated, according to the regulation.

In addition, any past mergers and acquisitions of domestic companies by foreign investors that are found to have threatened national security will be terminated. As an alternative, the MOC may “take relevant measures such as equity and asset transfers or other methods to eliminate their (mergers and acquisitions) influence on national security,” according to the regulation.

The regulation will take effect from Sept 1 of this year, the ministry said.

via China to review foreign M&A | Policy and Regulation | chinadaily.com.cn.