Mergers & Acquisitions Comparative Guide

1 Deal structure

1.1 How are private and public M&A transactions typically structured in your jurisdiction?

Private M&A transactions in Hong Kong are typically structured as either share purchases or asset purchases. Share deals are more commonly seen due to their relative simplicity, as all of the target's assets, liabilities and obligations will in effect pass to the buyer automatically. By contrast, the buyer acquires only specific assets and liabilities in an asset purchase, complicating the documentation. Additional asset-specific formalities may also need to be adhered to on an asset purchase.

Public M&A transactions in Hong Kong usually take the form of a takeover offer or a scheme of arrangement.