When do group restructures need to be notified?

We often receive queries from clients in relation to whether group restructures need to be notified to the Ministry of Commerce (MOFCOM) for antitrust merger control clearance.

This article provides some general guidance as to when a group restructure needs to be notified to MOFCOM for antitrust merger control clearance.

Generally, businesses need to notify MOFCOM of a transaction if:

(a) the transaction amounts to a "concentration" (pursuant to Article 20 of the Anti-Monopoly Law or AML); [Note: The term "concentration" refers to: (a) a merger of business operators; (b) an acquisition of a controlling stake of other business operators by a business operator through an acquisition of equity or assets; and (c) the acquisition of the controlling stake in other business operators by way of contracts etc or decisive influence by a business operator over other business operators); and