Security review further obstacle to M&As

April 16, 2010 | BY

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Foreign investors should expect an additional regulatory hurdle when doing a merger or acquisition in China.    The government is developing…

Foreign investors should expect an additional regulatory hurdle when doing a merger or acquisition in China.

The government is developing new rules for a national security review of M&As between foreign and PRC companies: the Plan for National Security Review Mechanism (NSR Plan).

The NSR Plan was jointly drafted by the Ministry of Commerce (Mofcom), the National Development and Reform Commission (NDRC) and the Legislative Affairs Office of the State Council. It has reportedly been submitted to the State Council for approval.

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