Research on the legal system of additional structural requirements for concentration of undertakings in China

Abstract

Concentration of undertakings is necessary and important for enterprise development. But it would produce or might have the effect of restricting competition. Therefore, countries and regions have regulated the concentration of undertakings through legislation, some of which is referential. Additional restrictive requirements for the concentration of undertakings are the important system for ex ante control. There are some problems in the “Provisions on the Additional Restrictive Requirements for the Concentration of Undertakings (for Trial Implementation)” in China. For example, the criteria for selection of assets to be stripped are not clear; the criteria for qualification of purchasers are too brief and abstract; the rules for stripping before delivery are lack of operability. Being competitive, commercial valuable and able to eliminate restriction of competition should be defined as the selection criteria for the assets to be stripped. The qualification of purchaser should be more specific in examining its independence from the concentration party and the willingness and ability to manage the assets to be stripped. The rules for stripping before delivery also need further improvement.