State Council, Opinion on Promoting the Merger and Re-organisation of Enterprises

国务院关于促进企业兼并重组的意见

October 13, 2010 | BY

clpstaff &clp articles &

M&A encouraged in six industries.

Clp Reference: 2130/10.08.28 Promulgated: 2010-08-28 Effective: 2010-08-28

Issued: August 28 2010
Effective: as of date of issuance

Main contents: The Opinion states that the megamerger, cross-regional merger and re-organisation, overseas merger and acquisition and investment cooperation of dominant enterprises shall be promoted, with an emphasis on automotive, steel, cement, machine manufacturing, electrolytic aluminum and rare earth industries (Article 2). The provisions on the restriction of cross-regional merger and re-organisation shall be screened, and the restriction on equity ratio of private sector investment shall be relaxed. Private sector investment into sectors relating to infrastructure, public utilities, financial services and social enterprises shall be supported (Article 3). Preferential tax treatment shall be granted for asset appraisal increments, gains from debt restructuring and assignment of land and housing ownership (Article 4).

clp reference:2130/10.08.28promulgated:2010-08-28effective:2010-08-28

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