First Supplementing Regulations Promulgated Post Anti-Monopoly Law

The State Council published the Regulations on Notification Thresholds for Concentrations of Undertakings on August 3.  The new thresholds supplement the merger control rules under the Anti-Monopoly Law (AML), which contains no specific notification thresholds. The new Regulations became effective upon promulgation on August 3.
The Regulations recites the forms of concentrations, namely: (1) mergers of multiple undertakings; (2) one undertaking gaining control over another by means of equity or asset purchase; and (3) one undertaking gaining controlling rights or decisive influence over another by means of contracts or other means.

Under the new Regulation implementing the AML, prior notification is required for concentrations meeting either of the following thresholds: the combined worldwide turnovers of all undertakings involved in the last fiscal year exceed 10 billion yuan, and the China-wide turnovers of at least two undertakings each exceeds 400 million yuan; or the combined China-wide turnovers of all undertakings involved in the last fiscal year exceed 2 billion yuan, and the China-wide turnovers of at least two undertakings each exceeds 400 million yuan. 

(China IP News)

2013-07-17