At present, foreign investors actively choose to merge the leading Chinese enterprises and take over the Chinese share in joint-venture business, which means they can not only terminate their present and potential competitors, but also acquire bigger market share and meanwhile save 3 – 5 years’ time for investing new project.
Mofcom released “Provisions on Merger and Acquisition of Domestic Enterprises by Foreign Investors” (Full text in Chinese) on Aug. 8, 2006. The new regulation will become effective on September 8, 2006 in replacement of the existing 2003 Tentative Provisions. In the regulation, it’s the first time to define the exchange-offer process. Share swapping is approved in lieu of cash payment in takeovers by foreign firms. The newly issued Regulations is expected to well-supervise, and to prevent domestic assets loss toward offshore company.
Subject: Provisions on M. & A. of Chinese Enterprises by Foreign Investors
Speaker:
Mr. Cao Ping, Partner of Chongqing Senswins Law Firm
Mr. Liu Facheng, Partner of Chongqing Senswins Law Firm
Registration:
To register for this event please email your response to the European Chamber at chengdu@euccc.com.cn or fax at 028 8666 5844 by Friday 25th August 2006, noontime. For any further inquiry, please contact European Chamber Chengdu Office at 028 8671 0577.
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