China Increases Merger Filing Thresholds And Issues Guidance On Process

On 26 January 2024, the State Council of China released its long-awaited and increased turnover thresholds for mandatory merger notifications in the Provisions of the State Council on Thresholds for the Notification of Concentrations of Undertakings ("2024 Thresholds"). The effect is expected to be a marked decrease in the amount of transactions to be filed with the Chinese merger control authority, the State Administration for Market Regulation ("SAMR"). The 2024 Thresholds became immediately effective.

The 2024 Thresholds are supplemented by SAMR's Guidance Handbook for Anti-Monopoly Notification of Concentration of Undertakings ("Handbook")¹, which clarifies certain legal and practical issues associated with the merger control filing process in China.