New M&A review process to be launched (2)

The new rule explains under which circumstances conditional approval will be given and measures for dealing with disagreements, Shang noted.

The number of M&A applications filed so far this year has reached 186, about the same as last year. The number is expected to be stable over the next two years, Shang said.

Meanwhile, MOFCOM has closed 154 cases this year, with 142 approved unconditionally, six conditionally and another six withdrawn by the applicants, according to the regulator.

The conditionally approved cases include Western Digital's acquisition of Hitachi Global Storage Technologies, Google's buyout of Motorola Mobility, and US retail giant Wal-Mart's acquisition of Niuhai Holding, parent company of China's largest online supermarket, Yihaodian.

The key standards in MOFCOM's review are concentration of market share and transfer of control.

The vague definition of control makes the review difficult, according to Shang, who expressed hope that lawmakers and the State Council can work out further details.

People normally think that a 51 percent stake in a company is a controlling stake, but there are many cases that are more complicated in practice, Huang said.

Certain cases still need to be clarified under the Anti-Monopoly Law, he said, such as whether it counts as transfer of control if a principal shareholder who owns less than a 50 percent stake in a company wants to transfer the shareholding.

Antitrust enforcement in China is overseen by MOFCOM, the National Development and Reform Commission, and the State Administration for Industry and Commerce.

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