Hong Kong Mergers and Acquisitions - Daddy Tv

A merger and acquisition is a vital strategy for companies looking to increase the size of their operations or to increase their profits. The process can also be beneficial for companies that are undergoing internal restructurings and for local conglomerates. Hong Kong has seen a significant amount of M&A deals over the last few years. According to a Latham & Watkins report, the majority of M&A deals in the region involve the purchase or combining of a company with its subsidiaries. This may be a result of a company being in financial difficulty or due to an enticing decision to grow the company’s performance.

M&A deals in the country are subject to the Companies Ordinance as well as the Competition Law. The antitrust law doesn’t contain a general framework for control of mergers, however it does include two “safe-harbor thresholds” to analyze possible competition issues that might result from mergers that have been completed. The government is also reexamining its current framework of antitrust laws.

The M&A market in Hong Kong is a multi-jurisdictional market and it is vital to be aware of local legal, commercial and regulatory realities and market practices to ensure that the process is smooth and efficient. It is also crucial for you to be aware of various issues and risks that can arise in cross-border M&A transactions. This includes:

tech’s impact on corporate acquisition strategies