New rules limit scope of anti-monopoly law

Mergers in which the participating companies would have combined worldwide annual revenues in excess of US$1.5 billion would require government approval under China’s new anti-monopoly law. At least two of the participants must also have China revenue of more than US$58 million in order to trigger the approval process, according to rules published on Monday. Another measure provides that companies with collective China revenues of more than US$290 million need notify the authorities of an intended merger only if at least two participants have China revenue of more than US$58 million. The rules should do much to ease concerns that the anti-monopoly law could affect global deals with only a tangential link to China, the Wall Street Journal reported. Earlier drafts included a requirement that companies with a specified market share notify the authorities should they wish to merge, but this is absent from the final document.