China Introduces New M&A Rules To Regulate Foreign Investment

September 11 - The Wall Street Journal - Chinese regulators introduced merger-and-acquisition rules that are targeting not just foreign investors but also Chinese companies incorporated overseas.

The regulators said the rules, which took effect Friday, aim to "promote and regulate foreign investment in China."

Merger-and-acquisition experts said the rules also might help to crack down on false inflows made through overseas companies set up by Chinese investors. Such inflows help fuel inflation and hinder Beijing's efforts to curb overly rapid investment growth that some economists fear could cause the economy to overheat, analysts said.

Chinese investors sometimes set up offshore vehicles to make their investments at home in order to enjoy tax and other benefits accorded to foreign companies in China.

Investment inflows from such companies account for about one-third of China's total foreign direct investment, estimates Mei Xinyu, a researcher at the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce. FDI in China totaled $72.4 billion last year, according to revised data from the Commerce Ministry, up from just above $60 billion in 2004.

"The [revised] rules can help to clear up false foreign direct investment" as well as prevent embezzlement of domestic assets, Mr. Mei said.

The new rules require that Chinese companies incorporated overseas get approval from the Commerce Ministry for any M&A activity in China, just like other foreign investors. Previously, M&A activities by these companies needed approval only from local governments.

China Halts Brokerage Expansion, Thwarts Wall Street

September 14 - Bloomberg.com - China halted sales of domestic brokerages to international firms, thwarting plans by companies including Citigroup Inc. and Merrill Lynch & Co. to increase trading in the world's fastest-growing stock market. Read More.

M&A Roundup from CFO.com (9/14)

September 14 - CFO.com - Chevron and Cnooc and PetroChina and China Petroleum and Chemical Corp.; General Electric and Apollo Management; Canadian Natural Resources Limited and Anadarko Canada; Actavis and Barr Pharmaceuticals and Pliva; and more. Read More.

China talks of eventual currency shift ahead of G7

September 15 - Reuters - China, accused by critics of keeping its currency artificially weak for economic gain, said on Friday it would ease its grip on the yuan at some stage, but it remained coy about when. Before a meeting of the Group of Seven industrialized powers on Saturday, Chinese central bank governor Zhou Xiaochuan did not offer a timeframe but said his country at some point would allow for a wider band in which the yuan, or renminbi, could trade against major currencies. Read More.

EU plans to ease banking mergers

September 12 - BBC - The European Commission has unveiled plans aimed at facilitating cross-border mergers between banks. Existing rules allow member states to block proposals if they think a merger threatens the target firm, but the EU says the rules are prone to abuse. Read More.

M&A Roundup from CFO.com

August 31 - CFO.com - Goldcorp and Glamis Gold; Russian Aluminum and Sual Group and Glencore International; Alcatel and Lucent; Inco and Phelps Dodge and CVRD; Kinder Morgan and Richard Kinder and investors; Unilever and Permira Funds; Western Refining and Giant Industries. Read More.

Goldman, Lehman had worst Q3 banking drops

August 30 - Reuters.com - Goldman Sachs Group Inc. and Lehman Brothers Holdings Inc. suffered the biggest declines in equities underwriting and announced mergers and acquisitions activity during the fiscal third quarter, according to Dealogic data. Read More.

Menzies goes on buying spree despite fall in profits

September 5 - Scotsman.com - JOHN Menzies, the Capital-based logistics and aviation company, today announced a further two acquisitions as it unveiled a drop in first-half profits. Read More.