A merger and acquisition is an essential option for companies looking to expand the scale of their operations or boost their profits. This strategy is also beneficial for companies that are undergoing internal restructuring or for domestic conglomerates. Hong Kong has seen a significant number of M&A deals in recent years. According to an Latham & Watkins https://mittrchinese.com/hong-kong-mergers-and-acquisitions-companies-laws-market/ report, the majority M&A deals in the region involve the purchase or merging of a company with its subsidiaries. This could be due to financial problems or a strategic choice made to boost a business.

M&A transactions in the country are governed by the Companies Ordinance and the Competition Law. The antitrust law doesn’t include a general merger-control system, but it does include two “safe harbor thresholds” for the assessment of possible competition concerns that result from completed mergers. Moreover the government is currently reviewing its current structure of antitrust laws that cover a wider range of industries.

To ensure a smooth and efficient transaction it is vital to know local legal and commercial realities. It is also crucial to be able to deal with various risks and issues that could be encountered in cross-border M&A transactions. This includes: