A merger and acquisition is a crucial option for companies looking to expand the scale of their operations, or increase the amount of money they earn. The process is also hong kong M&A beneficial for companies that are going through internal transformations and also for conglomerates that are based in the country. Hong Kong has seen an increase in M&A transactions over the past few years. According to an Latham & Watkins report, the majority of M&A deals in the region involve the buying or merging of a company with its subsidiaries. This could be because of a company being in financial trouble or because of an investment strategy to improve the business.
M&A transactions in the United States are governed by the Companies Ordinance and the Competition Law. The antitrust law doesn’t include a general merger-control policy, but it does contain two “safe thresholds” to assess possible competition concerns that result from completed mergers. The government is also reexamining its current framework of antitrust laws.
The M&A market in Hong Kong is a multi-jurisdictional business and it is essential to be aware of local legal, commercial realities and market practices in order to ensure that the process is smooth and efficient. It is important to be able to address the various issues and risks which can be encountered during cross-border M&A transactions. These include: