On January 1, 2010 two MOFCOM regulations regarding the reporting of concentrations, and review of concentrations became effective. This posting shall give an overview of the two releases:
(1) Measures for the Reporting of Concentrations of Business Operators
These new Measures will have applicability to mergers of undertaking, acquisitions through shares or equities and acquisitions through contractual obligations. The draft version of the Measures contained definition of “control” and issues surrounding joint ventures, however both have been removed. The Measures provides details of what revenues are to be taking into consideration when assessing if the entity meets the threshold requirements. The Measures lay down the requirement that all documentation submitted to MOFCOM are required to be in Chinese.
Available in Chinese at: http://fldj.mofcom.gov.cn/aarticle/c/200911/20091106639149.html
(2) Measures for the Review of Concentrations of Business Operators
These Measures address the process MOFCOM may take during the process where an undertaking has satisfied the notification threshold requirements and submitted an application for review by the Ministry. The Measures promote and encourage voluntary submission of additional information
Available in Chinese at: http://fldj.mofcom.gov.cn/aarticle/c/200911/20091106639145.html