China’s new anti-competition law could delay mergers and acquisitions, lawyers and business executives told the Financial Times. The laws take effect in China on Friday and India later this year. In China, companies will have to notify Chinese enforcement agencies about any planned M&A deals that meet certain thresholds – then get approval before completing the deal. China and India are implementing laws based on the EU model, covering anti-competitive agreements. The potential effect on M&A is causing concern among multinational companies. Lawyers and business executives believe China’s thresholds for merger filings are too low, and will likely ensnare global deals that will have little effect on competition locally. They also fear enforcement agencies in each country will lack the resources and expertise to deal quickly with complex merger cases. In China, deals involving companies with a combined global turnover of US$1.5 billion – and where at least two of the parties each have turnover in China of US$60 million – are likely to have to file for approval.
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