Companies seeking approval for mergers in China are facing delays as the Chinese closely examine the deals. According to the Sydney Morning Herald, there is particular scrutiny on deals involving strategic industries or commodities such as copper, crude oil, iron ore or copper. Japanese trading house Marubeni Corp, for example, had a year long review before its $US 56.6 billion purchase of US grain merchant Gavilon was approved with conditions last month.
Focus on foreign deals
Antitrust lawyer Yee Wah Chin of New York law firm Ingram, Yazek, Gainen, Caroll and Bertolotti said there was little obvious antitrust rational. Ninty per cent of the deals registered with the Commerce Ministry in the last five years involved multinational firms, according to the US Trade Representative.