Who is the "stumbling block" for acquisition of U.S. enterprises?

The acquisition to 3Com of Huawei jointly Bain Capital from America attracts people's attention to the frustrating acquisition again after the issue of TCL’s failure in the acquisition to Alcatel, the final withdrawal of CNOOC's takeover bid for Unocal, Haier lifting of the Maytag acquisition and other events gradually fading out of people’s view. The market believes that the depreciation of assets brought by the loan-to-crisis of the United States is undoubtedly good news to the mergers and acquisitions of companies who want to go to the United States. However, the failing experience of the acquisition of Chinese companies to the United States which are more than the successful ones show that the factor that can decide the success of the merger is not only confined to the capital markets.

Disruption in the risk of rate exchange

Lawyer of USA O'Melveny & NY Li Qiang thinks, Chinese capital has not been open currently, so if the approval process can be faster, the using efficiency of funds can be greatly improved.

Subject to the investment review

Based on the consideration of national security, the United States published a new rule for reviewing of foreign investment this April that is the U.S. Committee on Foreign Investment (CFIUS) can investigate the foreign equity investment which is less than 10%. Earlier, it is not necessary for the foreign equity investment which is less than 10% be reviewed by CFIUS.

Be put into trouble from domestic approval

Although our government has been encouraging enterprises to go out, the opacity of government's approval and the internal approval is hard to coordinate, which often makes the Chinese companies implementing the strategy of “going out” for the overseas acquisition be in disadvantage.

http://www.ciimc.com

Permanent Legal Advisor:Beijing Huicheng Law Firm　　Director Lawyer:Fan Shiwen       Vice Director Lawyer:Zheng Guochen

Add: 6/F,United International Building,No.19 Dongsanhuannan Rd.Beijing,100021 China

Website Management:Network Department of CIIMC      Email:info@wedd.org  

Tel：+86 10－87665186 　Fax：+86 10－87665880/87665881