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I don’t understand what power China has over these deals. Is it basically, “if you merge without our approval you can’t operate/sell here?” Take Microsoft/Acti
by nonethewiser 4y ago
I don’t understand what power China has over these deals. Is it basically, “if you merge without our approval you can’t operate/sell here?”
Take Microsoft/Activision for example
> In addition, Microsoft Corp.’s planned $68.7 billion purchase of Activision Blizzard Inc., a videogame company, is also subject to Beijing’s lengthy merger scrutiny, among the reviews by other countries. Last year, China’s antitrust regulator declined the companies’ request to file the deal under a simplified and expedited procedure.
- x3n0ph3n3 4y ago> Is it basically, “if you merge without our approval you can’t operate/sell here?” That's exactly it.
- nonethewiser 4y agoInteresting. I had no idea this was a thing. There is a lot of grey area in this dynamic. The article notes that they tend to just delay, not outright block. This signals it’s not actually in their interest to bar operations in China and makes me think there is at least some opportunity to ignore them. It also mentions other countries, which, with maybe a few exceptions, inevitably have far less leverage than China. Seems like its really just a rubber stamp in such cases.