MOFCOM: Conditional Approval To Mitsubishi Acquisition Of Lucite

On 24 January 2009, China's Ministry of Commerce ("MOFCOM") issued a public announcement conditionally approving the proposed acquisition of Lucite International Group Limited ("Lucite") by Mitsubishi Rayon Co., Ltd ("Mitsubishi").

Mitsubishi intended to purchase all issued shares of Lucite, as a result of which Lucite would become a consolidated subsidiary of Mitsubishi. Although Mitsubishi and Lucite are foreign undertakings, both have large-scale sales in China which meet the relevant notification thresholds under the new PRC Anti-monopoly Law ("AML"). The proposed transaction therefore triggered the complementary notification review by MOFCOM according to the AML.

Mitsubishi submitted the notification of the transaction to MOFCOM on 22 December 2008. Having requested supplemental information, MOFCOM accepted the notification and started the 30-day preliminary review on 20 January 2009. As MOFCOM was concerned about the post-merger level of concentration and