TAIWAN Trends and Developments Contributed by: Derrick Yang, Judy Lo, Yu-Ting Su and Frances Shih, Lee and Li Attorneys-at-Law
Market Outlook M&A in Taiwan present both opportunities and chal - lenges amid a complex regulatory landscape and evolving market conditions. The ongoing surge in financial sector consolidations in 2025 exemplifies the delicate balance between corporate ambitions, regu - latory oversight, shareholder protections and labour rights. Success in this environment demands strict compliance, strategic foresight and a commitment to equitable stakeholder treatment. Looking ahead, Taiwan’s regulatory framework is still evolving in response to market dynamics and interna - tional trends. The FTC’s planned adjustments to merg - er thresholds will streamline oversight by focusing on transactions with significant market impact. The FSC’s reforms signal a shift towards more stringent control of financial sector consolidations, emphasising sta - bility and orderly market development. To effectively navigate Taiwan’s complex M&A ecosystem, parties should plan ahead when structuring transactions to mitigate potential disputes. They should take into account regulatory considerations, necessary approv - als, procedural requirements, the balance of minority shareholders’ rights, labour relations, and contractual safeguards to address regulatory uncertainties and post-closing compliances.
their review processes, requiring parties to a transac - tion to engage in labour–management consultations and implement protective measures for employees. Regulators may demand commitments such as guar - anteed retention of employees for a specified period (commonly one to two years), assurances against uni - lateral termination of labour contracts due to business changes, and other safeguards to mitigate adverse employment impacts. These requirements often extend transaction timeframes and give rise to addi - tional uncertainties over transactions. For instance, the Ministry of Labour’s (MOL) opposi - tion to the merger of two major delivery platforms was rooted in concerns over the precarious labour condi - tions of delivery workers. The MOL argued that the merger would exacerbate labour rights vulnerabilities, influencing the FTC’s ultimate decision to block the deal. Another case involved the merger of two banks, which closed in 2023. However, in 2025, disputes arose when the labour union alleged that the acquir - ing bank failed to honour its commitments, including the promised retention period, changes to the bonus schemes, and the reductions in incentives. This case illustrates how labour issues can persist beyond deal closure, affecting workforce engagement and corpo - rate reputation. Labour rights issues, such as employee retention, working conditions and compensation, remain promi - nent in M&A disputes. Failure to adequately address these concerns can lead to regulatory pushback, labour unrest and reputational damage. Therefore, parties must proactively engage with labour repre - sentatives and incorporate sufficient employee pro - tections into transaction planning.
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