MOFCOM recaps 2016 merger reviews

It also pledges to step up enforcement against companies failing to notify reportable deals, referring to Bombardier and New United Group, Beijing CNR and Hitachi, and five other cases where parties were fined for not informing MOFCOM of the proposed acquisitions or joint ventures.

MOFCOM reviewed around 80% of all transactions under the simple case procedure (a fast track for non-complex deals) in 2016, issuing clearances within 27 days on average after the acceptance of complete materials. Out of the 279 simple cases handled that year, 263—nearly 95%—mergers were cleared within 30 days. The ministry explained in its report that 82% of all deals it was notified of under both simple and standard procedures were reviewed within 30 days of complete notification acceptance.

This increased efficiency allowed the Chinese merger enforcement authority to devote more resources to the review of complex transactions, according to a Norton Rose Fulbright report, which added that MOFCOM adopted two conditional clearance decisions during 2016 and carefully reviewed other complex mergers that were ultimately cleared unconditionally after an in-depth investigation. Other highlights of the year included relieving Wal-Mart of its commitments after the U.S. retailer sold its e-commerce unit Yihaodian to JD.com.

Most procedures related to deals involving foreign companies, with U.S.- and EU-based firms being the largest groups. Japan came third, though last year's data confirms the progressive decline in the number of procedures companies from the East Asian country, the Norton Rose alert said. The firm also noted that there was a significant development in the scrutiny of notification materials during the year, and that the ministry is better equipped to review market information provided as part of merger notifications against a much more expanded database, significantly raising the bar for M&A parties.

MOFCOM also said in its press release that it continued to look into possible PRC Anti-monopoly Law revisions and improvements to merger review procedures, and that it cooperated with foreign competition authorities such as by concluding memoranda of understanding with Japan and the BRIC nations and collaborating with the U.S. and Europe on reviewing over 10 cross-border transactions. The regulator also said it remained active in engaging in meetings with the World Trade Organization, Organization for Economic Cooperation and Development, and the United Nations.

By Katherine Jo

China's merger control authority reviewed a record number of deals in 2016 and signaled that it is well positioned to handle complex cases.

The PRC Ministry of Commerce (MOFCOM) remains one of the most active merger enforcement agencies in the region. It received 378 review notifications, imitated 360 investigations and concluded 395 M&A reviews last year, according to a January 11, 2017 press release.

The report refers to some highlight deals where MOFCOM handed conditional approvals, including Anheuser-Busch InBev's acquisition of SAAB Miller, in which the regulator required AB InBev to spin off its 49% stake in China Resources Snow Beer, and Abbott Laboratories' acquisition of St. Jude Medical.

It also pledges to step up enforcement against companies failing to notify reportable deals, referring to Bombardier and New United Group, Beijing CNR and Hitachi, and five other cases where parties were fined for not informing MOFCOM of the proposed acquisitions or joint ventures.

MOFCOM reviewed around 80% of all transactions under the simple case procedure (a fast track for non-complex deals) in 2016, issuing clearances within 27 days on average after the acceptance of complete materials. Out of the 279 simple cases handled that year, 263—nearly 95%—mergers were cleared within 30 days. The ministry explained in its report that 82% of all deals it was notified of under both simple and standard procedures were reviewed within 30 days of complete notification acceptance.

This increased efficiency allowed the Chinese merger enforcement authority to devote more resources to the review of complex transactions, according to a Norton Rose Fulbright report, which added that MOFCOM adopted two conditional clearance decisions during 2016 and carefully reviewed other complex mergers that were ultimately cleared unconditionally after an in-depth investigation. Other highlights of the year included relieving Wal-Mart of its commitments after the U.S. retailer sold its e-commerce unit Yihaodian to JD.com.

Most procedures related to deals involving foreign companies, with U.S.- and EU-based firms being the largest groups. Japan came third, though last year's data confirms the progressive decline in the number of procedures companies from the East Asian country, the Norton Rose alert said. The firm also noted that there was a significant development in the scrutiny of notification materials during the year, and that the ministry is better equipped to review market information provided as part of merger notifications against a much more expanded database, significantly raising the bar for M&A parties.

MOFCOM also said in its press release that it continued to look into possible PRC Anti-monopoly Law revisions and improvements to merger review procedures, and that it cooperated with foreign competition authorities such as by concluding memoranda of understanding with Japan and the BRIC nations and collaborating with the U.S. and Europe on reviewing over 10 cross-border transactions. The regulator also said it remained active in engaging in meetings with the World Trade Organization, Organization for Economic Cooperation and Development, and the United Nations.