TAIWAN Trends and Developments Contributed by: Sarah Wu and Andrea Chen, Lee & Li Attorneys-at-Law
Lee & Li Attorneys-at-Law 8F, No 555, Sec 4 Zhongxiao E Rd Taipei 110055 Taiwan ROC
Tel: +886 2 2763 8000 Fax: +886 2 2766 5566 Email: attorneys@leeandli.com Web: leeandli.com
Regulatory issues and market practice While acquisition financing deals generally follow international practice, there are some nuances to be aware of when structuring a syndicated facility. This section will briefly introduce the reg- ulatory issues, market practice and recent trends in the loan market in Taiwan. Legal capacity of foreign entities There are some regulatory caveats in the tak- ing of security in Taiwan for acquisition financing deals arranged by foreign banks or other foreign entities. Prior to the amendment of the Taiwan Company Act, which took effect on 1 November 2018, a foreign company had no legal capacity to act as a security interest holder in Taiwan if it was not recognised by the competent authorities in Tai- wan and had not yet established a branch office in Taiwan in accordance with the relevant laws and regulations. In order to build an international environment for business, the Taiwan Legisla- tive Yuan amended the Act in 2018 to repeal the recognition mechanism for foreign companies, which may now enjoy the same rights and capa- bilities as local companies without being recog- nised; a foreign company only needs to register
Acquisition Finance in Taiwan: an Overview In Taiwan, acquisition deal volume continued to grow in 2024, including several high-profile cross-border M&A deals. According to data pub- lished by the Administration of Commerce of the Ministry of Economic Affairs of Taiwan, 252 M&A deals were concluded in Taiwan in 2024, includ- ing cross-border M&A deals in the technology industry. The industries significantly affected by the impact of US tariffs on the global market at the beginning of 2025, such as agriculture and industrial manufacturing, as well as the green energy industry and various industries for busi- nesses to control advanced technology, develop key resources and conduct strategic transfor- mation, are expected to incorporate M&A deals in the US into their business plans in order to respond to the increased tariffs. Furthermore, the hi-tech industry is thriving due to AI develop- ment in 2024, leading to a substantial increase in electricity demand, making M&A deals in the electricity industry worthy of close attention. Therefore, there is cautious optimism regard- ing cross-border M&A deals, and the market will continue to monitor the dynamics of various industries.
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