Corporate Restructuring: An Alternative in Corporate Restructuring

April 01, 2008 | BY

clpstaff

[email protected]; [email protected] Chinese law, merger (??) is a permitted approach to corporate restructuring. Merger is defined…

Under Chinese law, merger (??) is a permitted approach to corporate restructuring. Merger is defined under the Regulations concerning Merger and Division of Foreign Invested Enterprises as the consolidation of two companies into one company pursuant to contractual arrangements. It may happen through absorption or incorporation, and may take place between two foreign invested enterprises (FIE) or one foreign enterprise and a PRC domestically-incorporated company. Absorption involves a target company merging with another company; incorporation involves the merger of two companies into a newly-incorporated company.

Case Study: Share acquisition vs. Merger

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