Pursuant to the Anti-Monopoly Law, transactions which are
construed as "concentrations" (i.e. mergers, acquisitions
and joint ventures) and which meet with specified turnover
thresholds 1; must be notified to, and cleared
(from an antitrust law perspective) by MOFCOM, before business
operators can go ahead with these transactions (notifiable
concentrations).
Article 48 of the AML prohibits business operators from
implementing notifiable concentrations, without first seeking
clearance from MOFCOM. Failure to notify MOFCOM of notifiable
concentrations could result in the following sanctions: (a) an
order to cease implementing the concentration; (b) an order to
dispose the shares or assets within a stipulated period; (c)an
order to transfer the (relevant) business within a stipulated
period; (d) an order to adopt other necessary measures to reinstate
the market situation before the concentration; or (e) a fine of not
more than RMB500,000.
