Antitrust Lawyer Blog Commentary on Current Developments

MOFCOM Unveils Draft Guideline for Simple Merger Review

On April 18, 2014, China’s Ministry of Commerce (“MOFCOM”) unveiled the first tentative guideline for the simple merger review process:

  • Filing parties may submit a written petition for simple merger before the actual submission of the merger case.

  • The following documents, in both confidential and public versions, need to be included in the petition:

    • The petition form including the personal information of the petitioner (can be found here);

    • A description of the relevant market, including market shares and major competitors;

    • Documents pertaining to the merger, such as written agreements and contracts;

    • Merging parties’ financial audits;

    • Any other documents as requested by the Anti-Monopoly Bureau

  • Filing parties to a proposed simple merger deal may use a filing software to fill out the petition form (the software can be found here).

  • If a case does not meet the criteria for simple merger review, the petitioner must re-file the petition through the standard channel.

  • The petitioner for simple review must also fill out a “public review” form (can be found here). The completed form will then be posted on the MOFCOM website for ten days, during which any third party can submit a grounded complaint to dispute the status of the case.

It would appear that MOFCOM’s recourse to a public review process is aimed at increasing the transparency of the merger review process, since it replaces the old “one-on-one” consultations between MOFCOM and domestic stakeholders. It also shows MOFCOM’s commitment to effectively reduce the amount of red-tape surrounding the merger review process.

Links to our previous articles on MOFCOM’s Simple Review Procedure:

https://www.antitrustlawyerblog.com/mofcom-publishes-long-awaited-interim-rule-on-applicable-standards-for-simple-merger-review-cases/, detailing the definition of ‘simple case’ that qualifies for the simple review procedure

And

https://www.antitrustlawyerblog.com/mofcom-update-draft-rules-on-simplified-merger-review-procedure/which mentions the previous changes to the draft rules on the simple merger review

 

Mark Ye
202-589-1834
mye@dbmlawgroup.com