What is the legal framework for mergers and acquisitions of businesses in China?

The legal framework for mergers and acquisitions of businesses in China is governed primarily by the Companies Law and the Business Ventures Law. According to the Companies Law, any planned merger or acquisition of a business must be approved by the State Council. This process involves the Ministry of Commerce, a governmental department in charge of supervising and regulating business activities in the country. The Business Ventures Law states that mergers and acquisitions must be conducted in accordance with the procedures set forth in the Companies Law, and any business activities related to the merger or acquisition must comply with the provisions of the law. If a private company is involved in the merger or acquisition, the parties involved must first obtain the approval of the State Administration for Industry and Commerce (SAIC) before proceeding. All mergers and acquisitions must adhere to the fair market value regulations of the Securities Commission. All details related to the merger or acquisition, such as the valuation of assets and the terms of the agreement, must be made public. The local government also must approve the merger or acquisition. The local government is responsible for making sure that the merger or acquisition of businesses in China is fair and does not create a monopoly or disrupt the local economy. After the approval has been obtained, the parties involved should register the new entity with the local taxation authority to ensure that the new entity is in compliance with local tax laws.

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What is the legal framework for mergers and acquisitions of businesses in China?

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