Mergers & Acquisitions of Domestic Enterprises by Foreign Investors

December 2003 China Briefing

This issue deals with China’s new Mergers & Acquisitions regulations for foreign companies acquiring Chinese enterprises, covers environmental due diligence in China and lists Chinas top 100 ranked Universities. A brief introduction to Zibo city is also included.

Chris Devonshire-Ellis, Senior Partner, Dezan Shira & Associates, contributes the piece “Mergers & Acquisitions of Domestic Chinese Enterprises By Foreign Investors” which deals with the new Chinese regulations on foreign funded M&A in China. It specifies the guidelines for equity related and asset related acquisitions, negotiating the acquisition price, payment of consideration and capital contributions, dealing with Chinese debt / equity ratios and details the pertinent legislation and approvals processes in addition to anti-trust provisions in China. Bryce Dailly, of Bovis Lend Lease contributes an article on “Environmental Due Diligence In China” as is pertinent to China mergers and acquisitions processes. It covers situations when environmental due diligence should be enacted, the processes in China, and a useful flow chart identifying the integration of environmental due diligence into the China acquisition and disposal procedure. This issue also includes an article by Laetitia Henon-Hilaire of Dezan Shira & Associates research division, “Chinas Top 100 Ranked Universities” classified by type of institution, students training, pre-doctoral training, training of the Chinese “benke” (bachelors degree) and “zhuanke” (diploma), research facilities, scientific research, human sciences researches and their pertinent overall performance in each. This is a national survey.