Takeovers and Mergers in the PRC

This article is intended to provide a general guide to the subject matter. Specific advice should be sought about individual circumstances. Further information or advice may be obtained from Linklaters & Paines, Hong Kong office, 14th Floor, Alexandra House, Chater Road, Hong Kong; telephone: (852) 2842 4888; fax: (852) 2810 8133; contact David Mullarkey or Jeremy Parr.

The following article examines takeover and merger activity in the PRC in the recent years and the regulatory framework applying to such activities.

I. Takeover and merger activity in the PRC

Takeovers and mergers in the PRC have received some publicity of late.

In 1993 several state enterprises were purchased by foreign investors, an example being the purchase by China Strategic Investment, the Hong Kong vehicle of Indonesia's third largest conglomerate, Sinar Mas, of over 200 joint ventures in the PRC, many of which subsequently became subsidiaries of a holding company, China Tire Company Limited, which