China News Service, January 23. The State Administration for Market Regulation released an interpretation of the 2023 State Administration for Market Regulation’s review of operator concentration cases on its official website on the 23rd.
It is mentioned that in 2023, 797 cases of concentration of business operators will be concluded throughout the year, with an average completion time of 25.7 days.
In 2023, the State Administration for Market Regulation will effectively play the positive role of the anti-monopoly review of concentration of undertakings in assisting enterprises to optimize and restructure and economic transformation and upgrading, promote the revision of the "State Council's Regulations on the Standards for Declaration of Concentrations of Undertakings", and pilot entrust local governments to carry out concentration of undertakings. In the review work, the "Regulations on the Review of Concentrations of Undertakings" and "Anti-Monopoly Compliance Guidelines for Concentrations of Undertakings" were issued to improve the anti-monopoly business system for concentration of undertakings and efficiently promote anti-monopoly supervision and law enforcement on concentration of undertakings.
The State Administration for Market Regulation pointed out that in 2023, 797 cases of concentration of undertakings were concluded, of which 786 were approved, and the declarer withdrew the declaration after 11 cases were accepted.
Restrictive conditions were attached throughout the year to approve Wanhua Chemical Group Co., Ltd.'s acquisition of Yantai Juli Fine Chemicals Co., Ltd., Mailing Company's acquisition of Huirong Technology Company, Simcere Pharmaceutical Co., Ltd.'s acquisition of Beijing Tobixi Pharmaceutical Co., Ltd., and Botong. The company acquired 4 cases including VMware Corporation, and unconditionally approved 782 cases of concentration of undertakings, a year-on-year increase of 1.2%. The transaction size was 3.92 trillion yuan, a slight increase of 0.5% from the previous year; the average trial conclusion time was 25.7 days, a decrease of 0.8% from the previous year. sky.
Judging from the status of approved cases throughout the year, the specific characteristics are as follows:
First, looking at the types of cases, the vast majority are simple cases and are closed in the first stage.
A total of 707 simple cases were concluded throughout the year, accounting for 90%, and a total of 698 cases were concluded in the first stage, accounting for 89%.
Judging from the local review entrusted by the pilot, the five pilot provincial bureaus concluded 352 simple cases of concentration of operators throughout the year, accounting for nearly half of the total number of simple cases. Among them, the Shanghai Municipal Market Supervision Bureau concluded the most, 157 cases, accounting for 22%.
Second, from the perspective of transaction entities, mergers and acquisitions between domestic enterprises are active.
The largest number of concentration cases between domestic enterprises was 437, accounting for 56%; there were 253 concentration cases between overseas enterprises, accounting for 32%; and there were 92 concentration cases between domestic and foreign enterprises, accounting for 12%.
State-owned enterprises participated in 388 concentration cases, accounting for 49%; foreign enterprises participated in 361 concentration cases, accounting for 46%; private enterprises participated in 296 concentration cases, accounting for 38%.
Third, from the perspective of industry distribution, the concentration mainly focuses on industrial restructuring in the real economy and people's livelihood areas.
The real economy manufacturing industry had the largest number of cases concluded throughout the year, with 291 cases, accounting for 37%; other industries with a relatively high proportion include wholesale and retail, transportation, water, electricity and heat production and supply, finance, real estate, information technology services, etc.
From the perspective of subdivided industry categories, the manufacturing industry has the largest number of cases involving chemical raw materials and products, with 53 cases, accounting for 18% of the total number of cases in the manufacturing industry; others with higher proportions include automobile manufacturing, computer and electronic equipment manufacturing, Pharmaceutical manufacturing industry, etc.
Fourth, in terms of transaction types and model characteristics, horizontal concentration accounts for the largest proportion, and equity acquisition is still the main transaction model.
In terms of transaction types, there were 417 horizontal concentration cases involving competitors in the same industry, accounting for 53%; 311 vertical concentration cases involving upstream and downstream enterprises, accounting for 40%; and 191 mixed concentration cases without horizontal and vertical relationships, accounting for 40%. twenty four%.
In terms of transaction patterns, the largest number of cases involved equity acquisition, 445 cases, accounting for 56%; followed by the establishment of joint ventures, 270 cases, accounting for 34%.
Fifth, looking at the place of business registration, companies participating in the concentration of operators come from more than 30 countries and regions around the world. Concentrations among overseas companies mainly involve the United States, Japan, France and other countries.
In China, Guangdong, Shanghai, Beijing, Zhejiang, and Shandong are the top five provinces (cities) in terms of the number of registered places participating in the concentration.
The State Administration for Market Regulation said that in the next step, it will adhere to the equal emphasis on regulatory norms and promotion of development, improve the classified and hierarchical review system, promote normalized supervision before, during and after the event, further improve the quality and efficiency of centralized review of operators, and create a market-oriented, legal and international A first-class business environment will contribute more market supervision power to promote high-quality development.