A merger and acquisition is a critical strategy for companies looking to expand their operations or boost their profit. This is also beneficial for companies that are going through internal restructuring and for domestic conglomerates. Hong Kong has seen an increase in M&A transactions in the past few years. According to a report by Latham & Watkins, the majority of M&A transactions in the region are the merger or acquisition of a business and/or its subsidiaries. This could be because of a company facing financial difficulty or due to an investment strategy to improve the company’s performance.
M&A deals in the country are controlled by the Companies Ordinance as well as the Competition Law. The antitrust law doesn’t contain a general framework for merger control, but it does contain two «safe-harbor thresholds» to determine the potential for competition issues that could arise from mergers that have been completed. Furthermore, the government is currently reviewing its current structure of antitrust laws that cover a wider range of industries.
To ensure smooth and efficient transactions it https://mittrchinese.com/hong-kong-mergers-and-acquisitions-companies-laws-market/ is vital to know the local legal and market conditions. It is essential to be able address various problems and risks that could occur during cross-border M&A deals. This includes: