China to bring more regulations on foreign acquisitions
China plans to bring in over 20 supporting regulations on foreign mergers and acquisitions of domestic firms.
By PTI |
BEIJING: China plans to bring in over 20 supporting regulations on foreign mergers and acquisitions (M&A) of domestic firms, a senior lawmaker has said.
The regulations would be in place before the Anti-trust Law comes into effect on August one next year, Cheng Siwei, Vice-Chairman of the Standing Committee of the National People's Congress, said.
He said the proposed regulations would help ensure that foreign M and A acquisition deals foster China's economic growth without threatening its economic security.
Under the Antitrust Law, foreign merger and acquisition would come under the scanner of China to see if they posed a potential threat to national security, Cheng said, according to Xinhua news agency.
In evaluating foreign M and A deals, the first criterion would be whether the domestic firms were fairly priced and second whether the deal would lead to company asset growth, Cheng added.
The regulations would be in place before the Anti-trust Law comes into effect on August one next year, Cheng Siwei, Vice-Chairman of the Standing Committee of the National People's Congress, said.
He said the proposed regulations would help ensure that foreign M and A acquisition deals foster China's economic growth without threatening its economic security.
Under the Antitrust Law, foreign merger and acquisition would come under the scanner of China to see if they posed a potential threat to national security, Cheng said, according to Xinhua news agency.
In evaluating foreign M and A deals, the first criterion would be whether the domestic firms were fairly priced and second whether the deal would lead to company asset growth, Cheng added.
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