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MOFCOM Clarifies Structural Remedies for Implementing Concentrations of Undertakings
MOFCOM Clarifies Structural Remedies for Implementing Concentrations of Undertakings
The Interim Provisions on the Implementation of Divestiture of Assets or Business of Concentration of Undertakings (hereinafter referred to as “Interim Provisions") was promulgated by the Ministry of Commerce of the People’s Republic of China (hereinafter referred to as “MOFCOM") on 5 July, 2010. The Interim Provisions, for the first time in the form of regulatory documents by the enforcement authority of the Anti-monopoly Law, clarify the procedure of implementing commitments in divestiture of assets or business to certain concentrations of undertakings. In addition, the Interim Provisions serve as another important regulation following a series of guides and measures related to concentration of undertakings promulgated by the MOFCOM, ushering in a new stage of law-enforcement practice of undertaking concentration examination. Later on, the MOFCOM may hold a prudent attitude before making a decision to prohibit undertaking concentrations. However, as for the undertaking concentrations which may raise competition concerns, a decision subject to restrictive divestiture conditions is more likely to be made by the MOFCOM.
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