All change in M&A – Taiwan Focus

After gaining more than 10 years experience in facilitating and regulating M&A activity in Taiwan by adopting the Mergers and Acquisitions Act, the Taiwanese regulator proposed extensive amendments to the M&A Act in a Bill to the legislative authority in November 2013. The Bill is designed to resolve a number of issues which have arisen while implementing the M&A Act, as well as to further liberalise and facilitate mergers and acquisitions in Taiwan. Once enacted, the Bill would provide more flexibility for the types and structures of M&A in Taiwan, further protect the rights and interests of certain stakeholders, such as minority shareholders, employees, creditors, and apply the same tax benefits to spin-off transactions. When structuring M&A in Taiwan, businesses should monitor the legislative status of the Bill closely in order to take advantage of the relevant benefits and to comply with the new requirements as stipulated under the Bill.