On 31 October 2011, the Ministry of Commerce
(MOFCOM) publicly announced the eighth conditional
merger clearance since the enactment of the Anti-monopoly Law
(AML) in 2008. According to its
announcement1 , MOFCOM cleared the proposed acquisition
by Alpha Private Equity Fund V (Alpha V) of Savio
group (an Italia based textile machinery producer,
Savio) with four conditions. This is also the
second conditional merger clearance this year2.
Set out below are the salient issues in relation to this
conditional clearance decision.
Parties. The acquirer, Alpha V is a
private equity fund, whose investments mainly relate to non-ferrous
metal recycling, supply of household textile, and production and
supply of textile machinery. Specifically, Alpha V holds 27.9%
shares of Uster Technologies Ltd (Uster),the
global leader in textile testing and quality control machines.
