i Table of contents 1016

GPG Corporate M&A 2025 Vol 1

Definitive global law guides offering comparative analysis from top-ranked lawyers

INTRODUCTION		7
Contributed by Frank Aquila, Sullivan & Cromwell LLP		7
ANDORRA		13
Law and Practice		13
Contributed by Cases & Lacambra		13
ANTIGUA		25
Law and Practice		25
Contributed by CDB Legal Services		25
ARGENTINA		33
Law and Practice		33
Contributed by Naveira, Truffat, Martínez, Ferrari & Mallo Abogados		33
ARMENIA		57
Law and Practice		57
Contributed by HAP		57
Trends and Developments		80
Contributed by HAP		80
AUSTRALIA		85
Law and Practice		85
Contributed by MinterEllison		85
Trends and Developments		114
Contributed by MinterEllison		114
AUSTRIA		124
Law and Practice		124
Contributed by CERHA HEMPEL		124
Trends and Developments		147
Contributed by Fellner Wratzfeld & Partner		147
BAHRAIN		154
Law and Practice		154
Contributed by ASAR – Al Ruwayeh & Partners		154
Trends and Developments		169
Contributed by Hassan Radhi & Associates		169
BANGLADESH		178
Law and Practice		178
Contributed by Doulah & Doulah		178
BARBADOS		200
Law and Practice		200
Contributed by Fraser Law		200
Trends and Developments		217
Contributed by Fraser Law		217
BELGIUM		223
Law and Practice		223
Contributed by Van Bael & Bellis		223
BERMUDA		247
Law and Practice		247
Contributed by Walkers		247
BOSNIA & HERZEGOVINA		269
Law and Practice		269
Contributed by Marić & Co		269
Trends and Developments		280
Contributed by Marić & Co		280
BRAZIL		288
Law and Practice		288
Contributed by Franco Leutewiler Henriques Advogados		288
Trends and Developments		303
Contributed by Machado Meyer		303
BRITISH VIRGIN ISLANDS		309
Law and Practice		309
Contributed by Walkers		309
BULGARIA		325
Law and Practice		325
Contributed by Boyanov & Co.		325
Trends and Developments		343
Contributed by Boyanov & Co.		343
CAMEROON		351
Law and Practice		351
Contributed by Amadagana & Partners		351
CANADA		368
Law and Practice		368
Contributed by SkyLaw		368
Trends and Developments		393
Contributed by SkyLaw		393
CAYMAN ISLANDS		401
Law and Practice		401
Contributed by Maples Group		401
Trends and Developments		418
Contributed by Walkers		418
CHILE		424
Law and Practice		424
Contributed by Eyzaguirre & Cía		424
Trends and Developments		445
Contributed by UH&C Abogados		445
CHINA		454
Law and Practice		454
Contributed by Commerce & Finance Law Offices		454
Trends and Developments		473
Contributed by Commerce & Finance Law Offices		473
COLOMBIA		480
Law and Practice		480
Contributed by Baker McKenzie		480
Trends and Developments		502
Contributed by Baker McKenzie		502
COSTA RICA		506
Law and Practice		506
Contributed by Zurcher, Odio & Raven		506
CROATIA		521
Law and Practice		521
Contributed by Babic & Partners		521
CYPRUS		539
Law and Practice		539
Contributed by Scordis, Papapetrou & Co LLC		539
Trends and Developments		559
Contributed by Ioannides Demetriou LLC		559
CZECH REPUBLIC		568
Law and Practice		568
Contributed by BADOKH		568
DENMARK		588
Law and Practice		588
Contributed by Bruun & Hjejle		588
Trends and Developments		610
Contributed by Bruun & Hjejle		610
ECUADOR		616
Law and Practice		616
Contributed by Coronel & Pérez		616
Trends and Developments		628
Contributed by Coronel & Pérez		628
EGYPT		636
Law and Practice		636
Contributed by Soliman, Hashish & Partners		636
Trends and Developments		656
Contributed by Soliman, Hashish & Partners		656
ETHIOPIA		663
Law and Practice		663
Contributed by Mehrteab & Getu Advocates LLP		663
Trends and Developments		679
Contributed by Mehrteab & Getu Advocates LLP		679
FRANCE		686
Law and Practice		686
Contributed by Jeantet		686
Trends and Developments		713
Contributed by Jeantet		713
GERMANY		719
Law and Practice		719
Contributed by SZA Schilling, Zutt & Anschütz		719
Trends and Developments		741
Contributed by Sullivan & Cromwell LLP		741
GREECE		749
Law and Practice		749
Contributed by Zepos & Yannopoulos		749
Trends and Developments		770
Contributed by Zepos & Yannopoulos		770
GUATEMALA		777
Law and Practice		777
Contributed by Lex Atlas		777
GUINEA		793
Law and Practice		793
Contributed by YAC & Partners		793
Trends and Developments		818
Contributed by YAC & Partners		818
INDIA		826
Law and Practice		826
Contributed by JSA Advocates & Solicitors		826
Trends and Developments		847
Contributed by JSA Advocates & Solicitors		847
INDONESIA		854
Law and Practice		854
Contributed by TnP Law Firm		854
Trends and Developments		873
Contributed by KARNA		873
IRAQ		879
Law and Practice		879
Contributed by MENA Associates in association with AMERELLER		879
Trends and Developments		892
Contributed by MENA Associates in association with AMERELLER		892
IRELAND		895
Law and Practice		895
Contributed by Addleshaw Goddard		895
Trends and Developments		915
Contributed by Addleshaw Goddard		915
ISRAEL		922
Law and Practice		922
Contributed by Arnon, Tadmor-Levy		922
ITALY		942
Law and Practice		942
Contributed by Cleary Gottlieb Steen & Hamilton LLP		942
Trends and Developments		964
Contributed by La Scala S.t.a.p.a.		964
JAMAICA		971
Law and Practice		971
Contributed by Myers, Fletcher & Gordon		971
JAPAN		985
Law and Practice		985
Contributed by Mori Hamada		985
Trends and Developments		1010
Contributed by southgate		1010
1. Trends		16
1.1 M&A Market		16
1.2 Key Trends		16
1.3 Key Industries		16
2. Overview of Regulatory Field		16
2.1 Acquiring a Company		16
2.2 Primary Regulators		17
2.3 Restrictions on Foreign Investments		17
2.4 Antitrust Regulations		17
2.5 Labour Law Regulations		18
2.6 National Security Review		18
3. Recent Legal Developments		18
3.1 Significant Court Decisions or Legal Developments		18
3.2 Significant Changes to Takeover Law		18
4. Stakebuilding		18
4.1 Principal Stakebuilding Strategies		18
4.2 Material Shareholding Disclosure Threshold		19
4.3 Hurdles to Stakebuilding		19
4.4 Dealings in Derivatives		19
4.5 Filing/Reporting Obligations		19
4.6 Transparency		19
5. Negotiation Phase		19
5.1 Requirement to Disclose a Deal		19
5.2 Market Practice on Timing		20
5.3 Scope of Due Diligence		20
5.4 Standstills or Exclusivity		20
5.5 Definitive Agreements		20
6. Structuring		20
6.1 Length of Process for Acquisition/Sale		20
6.2 Mandatory Offer Threshold		20
6.3 Consideration		20
6.4 Common Conditions for a Takeover Offer		20
6.5 Minimum Acceptance Conditions		21
6.6 Requirement to Obtain Financing		21
6.7 Types of Deal Security Measures		21
6.8 Additional Governance Rights		21
6.9 Voting by Proxy		21
6.10 Squeeze-Out Mechanisms		21
6.11 Irrevocable Commitments		21
7. Disclosure		21
7.1 Making a Bid Public		21
7.2 Type of Disclosure Required		21
7.3 Producing Financial Statements		21
7.4 Transaction Documents		22
8. Duties of Directors		22
8.1 Principal Directors’ Duties		22
8.2 Special or Ad Hoc Committees		22
8.3 Business Judgement Rule		22
8.4 Independent Outside Advice		22
8.5 Conflicts of Interest		22
9. Defensive Measures		22
9.1 Hostile Tender Offers		22
9.2 Directors’ Use of Defensive Measures		22
9.3 Common Defensive Measures		23
9.4 Directors’ Duties		23
9.5 Directors’ Ability to “Just Say No”		23
10. Litigation		23
10.1 Frequency of Litigation		23
10.2 Stage of Deal		23
10.3 “Broken-Deal” Disputes		23
11. Activism		23
11.1 Shareholder Activism		23
11.2 Aims of Activists		24
11.3 Interference With Completion		24
1. Trends		28
1.1 M&A Market		28
1.2 Key Trends		28
1.3 Key Industries		28
2. Overview of Regulatory Field		28
2.1 Acquiring a Company		28
2.2 Primary Regulators		28
2.3 Restrictions on Foreign Investments		28
2.4 Antitrust Regulations		28
2.5 Labour Law Regulations		28
2.6 National Security Review		28
3. Recent Legal Developments		28
3.1 Significant Court Decisions or Legal Developments		28
3.2 Significant Changes to Takeover Law		28
4. Stakebuilding		29
4.1 Principal Stakebuilding Strategies		29
4.2 Material Shareholding Disclosure Threshold		29
4.3 Hurdles to Stakebuilding		29
4.4 Dealings in Derivatives		29
4.5 Filing/Reporting Obligations		29
4.6 Transparency		29
5. Negotiation Phase		29
5.1 Requirement to Disclose a Deal		29
5.2 Market Practice on Timing		29
5.3 Scope of Due Diligence		29
5.4 Standstills or Exclusivity		29
5.5 Definitive Agreements		29
6. Structuring		30
6.1 Length of Process for Acquisition/Sale		30
6.2 Mandatory Offer Threshold		30
6.3 Consideration		30
6.4 Common Conditions for a Takeover Offer		30
6.5 Minimum Acceptance Conditions		30
6.6 Requirement to Obtain Financing		30
6.7 Types of Deal Security Measures		30
6.8 Additional Governance Rights		30
6.9 Voting by Proxy		30
6.10 Squeeze-Out Mechanisms		30
6.11 Irrevocable Commitments		30
7. Disclosure		30
7.1 Making a Bid Public		30
7.2 Type of Disclosure Required		31
7.3 Producing Financial Statements		31
7.4 Transaction Documents		31
8. Duties of Directors		31
8.1 Principal Directors’ Duties		31
8.2 Special or Ad Hoc Committees		31
8.3 Business Judgement Rule		31
8.4 Independent Outside Advice		31
8.5 Conflicts of Interest		31
9. Defensive Measures		31
9.1 Hostile Tender Offers		31
9.2 Directors’ Use of Defensive Measures		31
9.3 Common Defensive Measures		31
9.4 Directors’ Duties		31
9.5 Directors’ Ability to “Just Say No”		32
10. Litigation		32
10.1 Frequency of Litigation		32
10.2 Stage of Deal		32
10.3 “Broken-Deal” Disputes		32
11. Activism		32
11.1 Shareholder Activism		32
11.2 Aims of Activists		32
11.3 Interference With Completion		32
1. Trends		36
1.1 M&A Market		36
1.2 Key Trends		36
1.3 Key Industries		37
2. Overview of Regulatory Field		38
2.1 Acquiring a Company		38
2.2 Primary Regulators		38
2.3 Restrictions on Foreign Investments		39
2.4 Antitrust Regulations		40
2.5 Labour Law Regulations		41
2.6 National Security Review		42
3. Recent Legal Developments		42
3.1 Significant Court Decisions or Legal Developments		42
3.2 Significant Changes to Takeover Law		43
4. Stakebuilding		43
4.1 Principal Stakebuilding Strategies		43
4.2 Material Shareholding Disclosure Threshold		44
4.3 Hurdles to Stakebuilding		44
4.4 Dealings in Derivatives		44
4.5 Filing/Reporting Obligations		45
4.6 Transparency		45
5. Negotiation Phase		46
5.1 Requirement to Disclose a Deal		46
5.2 Market Practice on Timing		46
5.3 Scope of Due Diligence		46
5.4 Standstills or Exclusivity		47
5.5 Definitive Agreements		47
6. Structuring		47
6.1 Length of Process for Acquisition/Sale		47
6.2 Mandatory Offer Threshold		47
6.3 Consideration		48
6.4 Common Conditions for a Takeover Offer		49
6.5 Minimum Acceptance Conditions		49
6.6 Requirement to Obtain Financing		49
6.7 Types of Deal Security Measures		50
6.8 Additional Governance Rights		50
6.9 Voting by Proxy		50
6.10 Squeeze-Out Mechanisms		50
6.11 Irrevocable Commitments		51
7. Disclosure		51
7.1 Making a Bid Public		51
7.2 Type of Disclosure Required		52
7.3 Producing Financial Statements		52
7.4 Transaction Documents		52
8. Duties of Directors		53
8.1 Principal Directors’ Duties		53
8.2 Special or Ad Hoc Committees		53
8.3 Business Judgement Rule		53
8.4 Independent Outside Advice		53
8.5 Conflicts of Interest		54
9. Defensive Measures		54
9.1 Hostile Tender Offers		54
9.2 Directors’ Use of Defensive Measures		54
9.3 Common Defensive Measures		55
9.4 Directors’ Duties		55
9.5 Directors’ Ability to “Just Say No”		55
10. Litigation		55
10.1 Frequency of Litigation		55
10.2 Stage of Deal		55
10.3 “Broken-Deal” Disputes		55
11. Activism		55
11.1 Shareholder Activism		55
11.2 Aims of Activists		55
11.3 Interference With Completion		55
1. Trends		60
1.1 M&A Market		60
1.2 Key Trends		60
1.3 Key Industries		60
2. Overview of Regulatory Field		61
2.1 Acquiring a Company		61
2.2 Primary Regulators		61
2.3 Restrictions on Foreign Investments		62
2.4 Antitrust Regulations		62
2.5 Labour Law Regulations		64
2.6 National Security Review		64
3. Recent Legal Developments		64
3.1 Significant Court Decisions or Legal Developments		64
3.2 Significant Changes to Takeover Law		65
4. Stakebuilding		65
4.1 Principal Stakebuilding Strategies		65
4.2 Material Shareholding Disclosure Threshold		65
4.3 Hurdles to Stakebuilding		65
4.4 Dealings in Derivatives		66
4.5 Filing/Reporting Obligations		67
4.6 Transparency		67
5. Negotiation Phase		68
5.1 Requirement to Disclose a Deal		68
5.2 Market Practice on Timing		68
5.3 Scope of Due Diligence		68
5.4 Standstills or Exclusivity		69
5.5 Definitive Agreements		69
6. Structuring		70
6.1 Length of Process for Acquisition/Sale		70
6.2 Mandatory Offer Threshold		70
6.3 Consideration		71
6.4 Common Conditions for a Takeover Offer		71
6.5 Minimum Acceptance Conditions		71
6.6 Requirement to Obtain Financing		71
6.7 Types of Deal Security Measures		72
6.8 Additional Governance Rights		72
6.9 Voting by Proxy		72
6.10 Squeeze-Out Mechanisms		72
6.11 Irrevocable Commitments		74
7. Disclosure		74
7.1 Making a Bid Public		74
7.2 Type of Disclosure Required		74
7.3 Producing Financial Statements		74
7.4 Transaction Documents		75
8. Duties of Directors		75
8.1 Principal Directors’ Duties		75
8.2 Special or Ad Hoc Committees		75
8.3 Business Judgement Rule		75
8.4 Independent Outside Advice		75
8.5 Conflicts of Interest		75
9. Defensive Measures		76
9.1 Hostile Tender Offers		76
9.2 Directors’ Use of Defensive Measures		76
9.3 Common Defensive Measures		77
9.4 Directors’ Duties		77
9.5 Directors’ Ability to “Just Say No”		78
10. Litigation		78
10.1 Frequency of Litigation		78
10.2 Stage of Deal		78
10.3 “Broken-Deal” Disputes		78
11. Activism		78
11.1 Shareholder Activism		78
11.2 Aims of Activists		79
11.3 Interference With Completion		79
1. Trends		89
1.1 M&A Market		89
1.2 Key Trends		89
1.3 Key Industries		90
2. Overview of Regulatory Field		90
2.1 Acquiring a Company		90
2.2 Primary Regulators		91
2.3 Restrictions on Foreign Investments		92
2.4 Antitrust Regulations		93
2.5 Labour Law Regulations		94
2.6 National Security Review		94
3. Recent Legal Developments		95
3.1 Significant Court Decisions or Legal Developments		95
3.2 Significant Changes to Takeover Law		95
4. Stakebuilding		96
4.1 Principal Stakebuilding Strategies		96
4.2 Material Shareholding Disclosure Threshold		96
4.3 Hurdles to Stakebuilding		96
4.4 Dealings in Derivatives		96
4.5 Filing/Reporting Obligations		97
4.6 Transparency		97
5. Negotiation Phase		97
5.1 Requirement to Disclose a Deal		97
5.2 Market Practice on Timing		98
5.3 Scope of Due Diligence		98
5.4 Standstills or Exclusivity		98
5.5 Definitive Agreements		99
6. Structuring		100
6.1 Length of Process for Acquisition/Sale		100
6.2 Mandatory Offer Threshold		100
6.3 Consideration		101
6.4 Common Conditions for a Takeover Offer		101
6.5 Minimum Acceptance Conditions		102
6.6 Requirement to Obtain Financing		102
6.7 Types of Deal Security Measures		102
6.8 Additional Governance Rights		103
6.9 Voting by Proxy		104
6.10 Squeeze-Out Mechanisms		104
6.11 Irrevocable Commitments		104
7. Disclosure		104
7.1 Making a Bid Public		104
7.2 Type of Disclosure Required		105
7.3 Producing Financial Statements		105
7.4 Transaction Documents		105
8. Duties of Directors		106
8.1 Principal Directors’ Duties		106
8.2 Special or Ad Hoc Committees		106
8.3 Business Judgement Rule		107
8.4 Independent Outside Advice		107
8.5 Conflicts of Interest		107
9. Defensive Measures		108
9.1 Hostile Tender Offers		108
9.2 Directors’ Use of Defensive Measures		109
9.3 Common Defensive Measures		109
9.4 Directors’ Duties		110
9.5 Directors’ Ability to “Just Say No”		110
10. Litigation		111
10.1 Frequency of Litigation		111
10.2 Stage of Deal		111
10.3 “Broken-Deal” Disputes		111
11. Activism		112
11.1 Shareholder Activism		112
11.2 Aims of Activists		113
11.3 Interference With Completion		113
1. Trends		127
1.1 M&A Market		127
1.2 Key Trends		127
1.3 Key Industries		128
2. Overview of Regulatory Field		128
2.1 Acquiring a Company		128
2.2 Primary Regulators		128
2.3 Restrictions on Foreign Investments		128
2.4 Antitrust Regulations		129
2.5 Labour Law Regulations		129
2.6 National Security Review		130
3. Recent Legal Developments		131
3.1 Significant Court Decisions or Legal Developments		131
3.2 Significant Changes to Takeover Law		133
4. Stakebuilding		133
4.1 Principal Stakebuilding Strategies		133
4.2 Material Shareholding Disclosure Threshold		133
4.3 Hurdles to Stakebuilding		134
4.4 Dealings in Derivatives		134
4.5 Filing/Reporting Obligations		134
4.6 Transparency		134
5. Negotiation Phase		135
5.1 Requirement to Disclose a Deal		135
5.2 Market Practice on Timing		135
5.3 Scope of Due Diligence		135
5.4 Standstills or Exclusivity		135
5.5 Definitive Agreements		136
6. Structuring		136
6.1 Length of Process for Acquisition/Sale		136
6.2 Mandatory Offer Threshold		136
6.3 Consideration		137
6.4 Common Conditions for a Takeover Offer		138
6.5 Minimum Acceptance Conditions		138
6.6 Requirement to Obtain Financing		138
6.7 Types of Deal Security Measures		139
6.8 Additional Governance Rights		139
6.9 Voting by Proxy		140
6.10 Squeeze-Out Mechanisms		140
6.11 Irrevocable Commitments		140
7. Disclosure		141
7.1 Making a Bid Public		141
7.2 Type of Disclosure Required		141
7.3 Producing Financial Statements		141
7.4 Transaction Documents		141
8. Duties of Directors		142
8.1 Principal Directors’ Duties		142
8.2 Special or Ad Hoc Committees		142
8.3 Business Judgement Rule		142
8.4 Independent Outside Advice		143
8.5 Conflicts of Interest		143
9. Defensive Measures		143
9.1 Hostile Tender Offers		143
9.2 Directors’ Use of Defensive Measures		143
9.3 Common Defensive Measures		144
9.4 Directors’ Duties		144
9.5 Directors’ Ability to “Just Say No”		144
10. Litigation		144
10.1 Frequency of Litigation		144
10.2 Stage of Deal		145
10.3 “Broken-Deal” Disputes		145
11. Activism		145
11.1 Shareholder Activism		145
11.2 Aims of Activists		145
11.3 Interference With Completion		146
1. Trends		158
1.1 M&A Market		158
1.2 Key Trends		158
1.3 Key Industries		158
2. Overview of Regulatory Field		158
2.1 Acquiring a Company		158
2.2 Primary Regulators		158
2.3 Restrictions on Foreign Investments		159
2.4 Antitrust Regulations		159
2.5 Labour Law Regulations		159
2.6 National Security Review		160
3. Recent Legal Developments		160
3.1 Significant Court Decisions or Legal Developments		160
3.2 Significant Changes to Takeover Law		160
4. Stakebuilding		160
4.1 Principal Stakebuilding Strategies		160
4.2 Material Shareholding Disclosure Threshold		160
4.3 Hurdles to Stakebuilding		161
4.4 Dealings in Derivatives		161
4.5 Filing/Reporting Obligations		161
4.6 Transparency		161
5. Negotiation Phase		162
5.1 Requirement to Disclose a Deal		162
5.2 Market Practice on Timing		162
5.3 Scope of Due Diligence		162
5.4 Standstills or Exclusivity		162
5.5 Definitive Agreements		162
6. Structuring		162
6.1 Length of Process for Acquisition/Sale		162
6.2 Mandatory Offer Threshold		163
6.3 Consideration		163
6.4 Common Conditions for a Takeover Offer		163
6.5 Minimum Acceptance Conditions		164
6.6 Requirement to Obtain Financing		164
6.7 Types of Deal Security Measures		164
6.8 Additional Governance Rights		164
6.9 Voting by Proxy		164
6.10 Squeeze-Out Mechanisms		164
6.11 Irrevocable Commitments		164
7. Disclosure		165
7.1 Making a Bid Public		165
7.2 Type of Disclosure Required		165
7.3 Producing Financial Statements		165
7.4 Transaction Documents		166
8. Duties of Directors		166
8.1 Principal Directors’ Duties		166
8.2 Special or Ad Hoc Committees		166
8.3 Business Judgement Rule		167
8.4 Independent Outside Advice		167
8.5 Conflicts of Interest		167
9. Defensive Measures		167
9.1 Hostile Tender Offers		167
9.2 Directors’ Use of Defensive Measures		167
9.3 Common Defensive Measures		167
9.4 Directors’ Duties		167
9.5 Directors’ Ability to “Just Say No”		168
10. Litigation		168
10.1 Frequency of Litigation		168
10.2 Stage of Deal		168
10.3 “Broken-Deal” Disputes		168
11. Activism		168
11.1 Shareholder Activism		168
11.2 Aims of Activists		168
11.3 Interference With Completion		168
1. Trends		181
1.1 M&A Market		181
1.2 Key Trends		181
1.3 Key Industries		182
2. Overview of Regulatory Field		183
2.1 Acquiring a Company		183
2.2 Primary Regulators		184
2.3 Restrictions on Foreign Investments		185
2.4 Antitrust Regulations		185
2.5 Labour Law Regulations		186
2.6 National Security Review		187
3. Recent Legal Developments		187
3.1 Significant Court Decisions or Legal Developments		187
3.2 Significant Changes to Takeover Law		188
4. Stakebuilding		188
4.1 Principal Stakebuilding Strategies		188
4.2 Material Shareholding Disclosure Threshold		188
4.3 Hurdles to Stakebuilding		188
4.4 Dealings in Derivatives		189
4.5 Filing/Reporting Obligations		189
4.6 Transparency		189
5. Negotiation Phase		189
5.1 Requirement to Disclose a Deal		189
5.2 Market Practice on Timing		190
5.3 Scope of Due Diligence		190
5.4 Standstills or Exclusivity		190
5.5 Definitive Agreements		191
6. Structuring		191
6.1 Length of Process for Acquisition/Sale		191
6.2 Mandatory Offer Threshold		192
6.3 Consideration		192
6.4 Common Conditions for a Takeover Offer		192
6.5 Minimum Acceptance Conditions		193
6.6 Requirement to Obtain Financing		193
6.7 Types of Deal Security Measures		194
6.8 Additional Governance Rights		194
6.9 Voting by Proxy		194
6.10 Squeeze-Out Mechanisms		194
6.11 Irrevocable Commitments		195
7. Disclosure		195
7.1 Making a Bid Public		195
7.2 Type of Disclosure Required		195
7.3 Producing Financial Statements		196
7.4 Transaction Documents		196
8. Duties of Directors		196
8.1 Principal Directors’ Duties		196
8.2 Special or Ad Hoc Committees		196
8.3 Business Judgement Rule		197
8.4 Independent Outside Advice		197
8.5 Conflicts of Interest		197
9. Defensive Measures		197
9.1 Hostile Tender Offers		197
9.2 Directors’ Use of Defensive Measures		198
9.3 Common Defensive Measures		198
9.4 Directors’ Duties		198
9.5 Directors’ Ability to “Just Say No”		198
10. Litigation		198
10.1 Frequency of Litigation		198
10.2 Stage of Deal		199
10.3 “Broken-Deal” Disputes		199
11. Activism		199
11.1 Shareholder Activism		199
11.2 Aims of Activists		199
11.3 Interference With Completion		199
1. Trends		204
1.1 M&A Market		204
1.2 Key Trends		204
1.3 Key Industries		204
2. Overview of Regulatory Field		204
2.1 Acquiring a Company		204
2.2 Primary Regulators		204
2.3 Restrictions on Foreign Investments		205
2.4 Antitrust Regulations		205
2.5 Labour Law Regulations		205
2.6 National Security Review		206
3. Recent Legal Developments		206
3.1 Significant Court Decisions or Legal Developments		206
3.2 Significant Changes to Takeover Law		206
4. Stakebuilding		207
4.1 Principal Stakebuilding Strategies		207
4.2 Material Shareholding Disclosure Threshold		207
4.3 Hurdles to Stakebuilding		208
4.4 Dealings in Derivatives		208
4.5 Filing/Reporting Obligations		208
4.6 Transparency		208
5. Negotiation Phase		208
5.1 Requirement to Disclose a Deal		208
5.2 Market Practice on Timing		209
5.3 Scope of Due Diligence		209
5.4 Standstills or Exclusivity		209
5.5 Definitive Agreements		209
6. Structuring		209
6.1 Length of Process for Acquisition/Sale		209
6.2 Mandatory Offer Threshold		210
6.3 Consideration		210
6.4 Common Conditions for a Takeover Offer		210
6.5 Minimum Acceptance Conditions		210
6.6 Requirement to Obtain Financing		210
6.7 Types of Deal Security Measures		211
6.8 Additional Governance Rights		211
6.9 Voting by Proxy		211
6.10 Squeeze-Out Mechanisms		211
6.11 Irrevocable Commitments		211
7. Disclosure		212
7.1 Making a Bid Public		212
7.2 Type of Disclosure Required		212
7.3 Producing Financial Statements		212
7.4 Transaction Documents		212
8. Duties of Directors		212
8.1 Principal Directors’ Duties		212
8.2 Special or Ad Hoc Committees		213
8.3 Business Judgement Rule		213
8.4 Independent Outside Advice		214
8.5 Conflicts of Interest		214
9. Defensive Measures		214
9.1 Hostile Tender Offers		214
9.2 Directors’ Use of Defensive Measures		215
9.3 Common Defensive Measures		215
9.4 Directors’ Duties		215
9.5 Directors’ Ability to “Just Say No”		215
10. Litigation		215
10.1 Frequency of Litigation		215
10.2 Stage of Deal		215
10.3 “Broken-Deal” Disputes		216
11. Activism		216
11.1 Shareholder Activism		216
11.2 Aims of Activists		216
11.3 Interference With Completion		216
1. Trends		226
1.1 M&A Market		226
1.2 Key Trends		226
1.3 Key Industries		227
2. Overview of Regulatory Field		227
2.1 Acquiring a Company		227
2.2 Primary Regulators		228
2.3 Restrictions on Foreign Investments		228
2.4 Antitrust Regulations		228
2.5 Labour Law Regulations		229
2.6 National Security Review		230
3. Recent Legal Developments		231
3.1 Significant Court Decisions or Legal Developments		231
3.2 Significant Changes to Takeover Law		232
4. Stakebuilding		232
4.1 Principal Stakebuilding Strategies		232
4.2 Material Shareholding Disclosure Threshold		232
4.3 Hurdles to Stakebuilding		233
4.4 Dealings in Derivatives		233
4.5 Filing/Reporting Obligations		233
4.6 Transparency		233
5. Negotiation Phase		234
5.1 Requirement to Disclose a Deal		234
5.2 Market Practice on Timing		234
5.3 Scope of Due Diligence		235
5.4 Standstills or Exclusivity		235
5.5 Definitive Agreements		235
6. Structuring		235
6.1 Length of Process for Acquisition/Sale		235
6.2 Mandatory Offer Threshold		236
6.3 Consideration		237
6.4 Common Conditions for a Takeover Offer		237
6.5 Minimum Acceptance Conditions		238
6.6 Requirement to Obtain Financing		238
6.7 Types of Deal Security Measures		238
6.8 Additional Governance Rights		239
6.9 Voting by Proxy		239
6.10 Squeeze-Out Mechanisms		239
6.11 Irrevocable Commitments		240
7. Disclosure		240
7.1 Making a Bid Public		240
7.2 Type of Disclosure Required		241
7.3 Producing Financial Statements		241
7.4 Transaction Documents		241
8. Duties of Directors		242
8.1 Principal Directors’ Duties		242
8.2 Special or Ad Hoc Committees		242
8.3 Business Judgement Rule		243
8.4 Independent Outside Advice		243
8.5 Conflicts of Interest		243
9. Defensive Measures		243
9.1 Hostile Tender Offers		243
9.2 Directors’ Use of Defensive Measures		244
9.3 Common Defensive Measures		244
9.4 Directors’ Duties		244
9.5 Directors’ Ability to “Just Say No”		244
10. Litigation		245
10.1 Frequency of Litigation		245
10.2 Stage of Deal		245
10.3 “Broken-Deal” Disputes		245
11. Activism		245
11.1 Shareholder Activism		245
11.2 Aims of Activists		245
11.3 Interference With Completion		246
1. Trends		250
1.1 M&A Market		250
1.2 Key Trends		250
1.3 Key Industries		251
2. Overview of Regulatory Field		251
2.1 Acquiring a Company		251
2.2 Primary Regulators		253
2.3 Restrictions on Foreign Investments		253
2.4 Antitrust Regulations		254
2.5 Labour Law Regulations		254
2.6 National Security Review		254
3. Recent Legal Developments		254
3.1 Significant Court Decisions or Legal Developments		254
3.2 Significant Changes to Takeover Law		256
4. Stakebuilding		256
4.1 Principal Stakebuilding Strategies		256
4.2 Material Shareholding Disclosure Threshold		256
4.3 Hurdles to Stakebuilding		257
4.4 Dealings in Derivatives		257
4.5 Filing/Reporting Obligations		258
4.6 Transparency		258
5. Negotiation Phase		258
5.1 Requirement to Disclose a Deal		258
5.2 Market Practice on Timing		259
5.3 Scope of Due Diligence		259
5.4 Standstills or Exclusivity		260
5.5 Definitive Agreements		260
6. Structuring		260
6.1 Length of Process for Acquisition/Sale		260
6.2 Mandatory Offer Threshold		261
6.3 Consideration		261
6.4 Common Conditions for a Takeover Offer		261
6.5 Minimum Acceptance Conditions		261
6.6 Requirement to Obtain Financing		261
6.7 Types of Deal Security Measures		261
6.8 Additional Governance Rights		262
6.9 Voting by Proxy		262
6.10 Squeeze-Out Mechanisms		263
6.11 Irrevocable Commitments		263
7. Disclosure		263
7.1 Making a Bid Public		263
7.2 Type of Disclosure Required		263
7.3 Producing Financial Statements		263
7.4 Transaction Documents		264
8. Duties of Directors		265
8.1 Principal Directors’ Duties		265
8.2 Special or Ad Hoc Committees		266
8.3 Business Judgement Rule		266
8.4 Independent Outside Advice		266
8.5 Conflicts of Interest		266
9. Defensive Measures		266
9.1 Hostile Tender Offers		266
9.2 Directors’ Use of Defensive Measures		267
9.3 Common Defensive Measures		267
9.4 Directors’ Duties		268
9.5 Directors’ Ability to “Just Say No”		268
10. Litigation		268
10.1 Frequency of Litigation		268
10.2 Stage of Deal		268
10.3 “Broken-Deal” Disputes		268
11. Activism		268
11.1 Shareholder Activism		268
11.2 Aims of Activists		268
11.3 Interference With Completion		268
1. Trends		272
1.1 M&A Market		272
1.2 Key Trends		272
1.3 Key Industries		272
2. Overview of Regulatory Field		272
2.1 Acquiring a Company		272
2.2 Primary Regulators		272
2.3 Restrictions on Foreign Investments		273
2.4 Antitrust Regulations		273
2.5 Labour Law Regulations		273
2.6 National Security Review		273
3. Recent Legal Developments		273
3.1 Significant Court Decisions or Legal Developments		273
3.2 Significant Changes to Takeover Law		274
4. Stakebuilding		274
4.1 Principal Stakebuilding Strategies		274
4.2 Material Shareholding Disclosure Threshold		274
4.3 Hurdles to Stakebuilding		274
4.4 Dealings in Derivatives		274
4.5 Filing/Reporting Obligations		274
4.6 Transparency		274
5. Negotiation Phase		275
5.1 Requirement to Disclose a Deal		275
5.2 Market Practice on Timing		275
5.3 Scope of Due Diligence		275
5.4 Standstills or Exclusivity		275
5.5 Definitive Agreements		275
6. Structuring		275
6.1 Length of Process for Acquisition/Sale		275
6.2 Mandatory Offer Threshold		276
6.3 Consideration		276
6.4 Common Conditions for a Takeover Offer		276
6.5 Minimum Acceptance Conditions		276
6.6 Requirement to Obtain Financing		276
6.7 Types of Deal Security Measures		276
6.8 Additional Governance Rights		276
6.9 Voting by Proxy		276
6.10 Squeeze-Out Mechanisms		276
6.11 Irrevocable Commitments		276
7. Disclosure		277
7.1 Making a Bid Public		277
7.2 Type of Disclosure Required		277
7.3 Producing Financial Statements		277
7.4 Transaction Documents		277
8. Duties of Directors		277
8.1 Principal Directors’ Duties		277
8.2 Special or Ad Hoc Committees		277
8.3 Business Judgement Rule		277
8.4 Independent Outside Advice		278
8.5 Conflicts of Interest		278
9. Defensive Measures		278
9.1 Hostile Tender Offers		278
9.2 Directors’ Use of Defensive Measures		278
9.3 Common Defensive Measures		278
9.4 Directors’ Duties		278
9.5 Directors’ Ability to “Just Say No”		278
10. Litigation		278
10.1 Frequency of Litigation		278
10.2 Stage of Deal		278
10.3 “Broken-Deal” Disputes		278
11. Activism		279
11.1 Shareholder Activism		279
11.2 Aims of Activists		279
11.3 Interference With Completion		279
1. Trends		291
1.1 M&A Market		291
1.2 Key Trends		291
1.3 Key Industries		291
2. Overview of Regulatory Field		291
2.1 Acquiring a Company		291
2.2 Primary Regulators		292
2.3 Restrictions on Foreign Investments		292
2.4 Antitrust Regulations		292
2.5 Labour Law Regulations		293
2.6 National Security Review		293
3. Recent Legal Developments		293
3.1 Significant Court Decisions or Legal Developments		293
3.2 Significant Changes to Takeover Law		294
4. Stakebuilding		294
4.1 Principal Stakebuilding Strategies		294
4.2 Material Shareholding Disclosure Threshold		294
4.3 Hurdles to Stakebuilding		294
4.4 Dealings in Derivatives		295
4.5 Filing/Reporting Obligations		295
4.6 Transparency		295
5. Negotiation Phase		295
5.1 Requirement to Disclose a Deal		295
5.2 Market Practice on Timing		295
5.3 Scope of Due Diligence		295
5.4 Standstills or Exclusivity		295
5.5 Definitive Agreements		296
6. Structuring		296
6.1 Length of Process for Acquisition/Sale		296
6.2 Mandatory Offer Threshold		296
6.3 Consideration		296
6.4 Common Conditions for a Takeover Offer		296
6.5 Minimum Acceptance Conditions		297
6.6 Requirement to Obtain Financing		297
6.7 Types of Deal Security Measures		297
6.8 Additional Governance Rights		297
6.9 Voting by Proxy		298
6.10 Squeeze-Out Mechanisms		298
6.11 Irrevocable Commitments		298
7. Disclosure		298
7.1 Making a Bid Public		298
7.2 Type of Disclosure Required		299
7.3 Producing Financial Statements		299
7.4 Transaction Documents		299
8. Duties of Directors		300
8.1 Principal Directors’ Duties		300
8.2 Special or Ad Hoc Committees		300
8.3 Business Judgement Rule		300
8.4 Independent Outside Advice		301
8.5 Conflicts of Interest		301
9. Defensive Measures		301
9.1 Hostile Tender Offers		301
9.2 Directors’ Use of Defensive Measures		301
9.3 Common Defensive Measures		301
9.4 Directors’ Duties		301
9.5 Directors’ Ability to “Just Say No”		302
10. Litigation		302
10.1 Frequency of Litigation		302
10.2 Stage of Deal		302
10.3 “Broken-Deal” Disputes		302
11. Activism		302
11.1 Shareholder Activism		302
11.2 Aims of Activists		302
11.3 Interference With Completion		302
1. Trends		313
1.1 M&A Market		313
1.2 Key Trends		313
1.3 Key Industries		313
2. Overview of Regulatory Field		313
2.1 Acquiring a Company		313
2.2 Primary Regulators		315
2.3 Restrictions on Foreign Investments		315
2.4 Antitrust Regulations		315
2.5 Labour Law Regulations		316
2.6 National Security Review		316
3. Recent Legal Developments		316
3.1 Significant Court Decisions or Legal Developments		316
3.2 Significant Changes to Takeover Law		316
4. Stakebuilding		316
4.1 Principal Stakebuilding Strategies		316
4.2 Material Shareholding Disclosure Threshold		316
4.3 Hurdles to Stakebuilding		317
4.4 Dealings in Derivatives		317
4.5 Filing/Reporting Obligations		317
4.6 Transparency		317
5. Negotiation Phase		317
5.1 Requirement to Disclose a Deal		317
5.2 Market Practice on Timing		317
5.3 Scope of Due Diligence		317
5.4 Standstills or Exclusivity		317
5.5 Definitive Agreements		318
6. Structuring		318
6.1 Length of Process for Acquisition/Sale		318
6.2 Mandatory Offer Threshold		318
6.3 Consideration		318
6.4 Common Conditions for a Takeover Offer		319
6.5 Minimum Acceptance Conditions		319
6.6 Requirement to Obtain Financing		319
6.7 Types of Deal Security Measures		319
6.8 Additional Governance Rights		320
6.9 Voting by Proxy		320
6.10 Squeeze-Out Mechanisms		320
6.11 Irrevocable Commitments		321
7. Disclosure		321
7.1 Making a Bid Public		321
7.2 Type of Disclosure Required		321
7.3 Producing Financial Statements		321
7.4 Transaction Documents		321
8. Duties of Directors		321
8.1 Principal Directors’ Duties		321
8.2 Special or Ad Hoc Committees		321
8.3 Business Judgement Rule		322
8.4 Independent Outside Advice		322
8.5 Conflicts of Interest		322
9. Defensive Measures		322
9.1 Hostile Tender Offers		322
9.2 Directors’ Use of Defensive Measures		322
9.3 Common Defensive Measures		323
9.4 Directors’ Duties		323
9.5 Directors’ Ability to “Just Say No”		323
10. Litigation		323
10.1 Frequency of Litigation		323
10.2 Stage of Deal		323
10.3 “Broken-Deal” Disputes		323
11. Activism		323
11.1 Shareholder Activism		323
11.2 Aims of Activists		324
11.3 Interference With Completion		324
1. Trends		329
1.1 M&A Market		329
1.2 Key Trends		329
1.3 Key Industries		329
2. Overview of Regulatory Field		330
2.1 Acquiring a Company		330
2.2 Primary Regulators		330
2.3 Restrictions on Foreign Investments		330
2.4 Antitrust Regulations		330
2.5 Labour Law Regulations		330
2.6 National Security Review		330
3. Recent Legal Developments		331
3.1 Significant Court Decisions or Legal Developments		331
3.2 Significant Changes to Takeover Law		332
4. Stakebuilding		333
4.1 Principal Stakebuilding Strategies		333
4.2 Material Shareholding Disclosure Threshold		333
4.3 Hurdles to Stakebuilding		333
4.4 Dealings in Derivatives		333
4.5 Filing/Reporting Obligations		333
4.6 Transparency		334
5. Negotiation Phase		334
5.1 Requirement to Disclose a Deal		334
5.2 Market Practice on Timing		334
5.3 Scope of Due Diligence		334
5.4 Standstills or Exclusivity		335
5.5 Definitive Agreements		335
6. Structuring		335
6.1 Length of Process for Acquisition/Sale		335
6.2 Mandatory Offer Threshold		335
6.3 Consideration		336
6.4 Common Conditions for a Takeover Offer		336
6.5 Minimum Acceptance Conditions		336
6.6 Requirement to Obtain Financing		337
6.7 Types of Deal Security Measures		337
6.8 Additional Governance Rights		337
6.9 Voting by Proxy		337
6.10 Squeeze-Out Mechanisms		338
6.11 Irrevocable Commitments		338
7. Disclosure		338
7.1 Making a Bid Public		338
7.2 Type of Disclosure Required		339
7.3 Producing Financial Statements		339
7.4 Transaction Documents		339
8. Duties of Directors		339
8.1 Principal Directors’ Duties		339
8.2 Special or Ad Hoc Committees		340
8.3 Business Judgement Rule		340
8.4 Independent Outside Advice		340
8.5 Conflicts of Interest		340
9. Defensive Measures		341
9.1 Hostile Tender Offers		341
9.2 Directors’ Use of Defensive Measures		341
9.3 Common Defensive Measures		341
9.4 Directors’ Duties		341
9.5 Directors’ Ability to “Just Say No”		341
10. Litigation		341
10.1 Frequency of Litigation		341
10.2 Stage of Deal		342
10.3 “Broken-Deal” Disputes		342
11. Activism		342
11.1 Shareholder Activism		342
11.2 Aims of Activists		342
11.3 Interference With Completion		342
1. Trends		355
1.1 M&A Market		355
1.2 Key Trends		355
1.3 Key Industries		355
2. Overview of Regulatory Field		355
2.1 Acquiring a Company		355
2.2 Primary Regulators		355
2.3 Restrictions on Foreign Investments		355
2.4 Antitrust Regulations		356
2.5 Labour Law Regulations		356
2.6 National Security Review		356
3. Recent Legal Developments		356
3.1 Significant Court Decisions or Legal Developments		356
3.2 Significant Changes to Takeover Law		356
4. Stakebuilding		356
4.1 Principal Stakebuilding Strategies		356
4.2 Material Shareholding Disclosure Threshold		356
4.3 Hurdles to Stakebuilding		356
4.4 Dealings in Derivatives		357
4.5 Filing/Reporting Obligations		357
4.6 Transparency		357
5. Negotiation Phase		357
5.1 Requirement to Disclose a Deal		357
5.2 Market Practice on Timing		357
5.3 Scope of Due Diligence		357
5.4 Standstills or Exclusivity		357
5.5 Definitive Agreements		358
6. Structuring		358
6.1 Length of Process for Acquisition/Sale		358
6.2 Mandatory Offer Threshold		358
6.3 Consideration		358
6.4 Common Conditions for a Takeover Offer		358
6.5 Minimum Acceptance Conditions		358
6.6 Requirement to Obtain Financing		359
6.7 Types of Deal Security Measures		359
6.8 Additional Governance Rights		359
6.9 Voting by Proxy		359
6.10 Squeeze-Out Mechanisms		359
6.11 Irrevocable Commitments		360
7. Disclosure		360
7.1 Making a Bid Public		360
7.2 Type of Disclosure Required		360
7.3 Producing Financial Statements		360
7.4 Transaction Documents		360
8. Duties of Directors		361
8.1 Principal Directors’ Duties		361
8.2 Special or Ad Hoc Committees		361
8.3 Business Judgement Rule		361
8.4 Independent Outside Advice		361
8.5 Conflicts of Interest		361
9. Defensive Measures		361
9.1 Hostile Tender Offers		361
9.2 Directors’ Use of Defensive Measures		361
9.3 Common Defensive Measures		363
9.4 Directors’ Duties		363
9.5 Directors’ Ability to “Just Say No”		364
10. Litigation		364
10.1 Frequency of Litigation		364
10.2 Stage of Deal		365
10.3 “Broken-Deal” Disputes		365
11. Activism		366
11.1 Shareholder Activism		366
11.2 Aims of Activists		366
11.3 Interference With Completion		367
1. Trends		371
1.1 M&A Market		371
1.2 Key Trends		371
1.3 Key Industries		373
2. Overview of Regulatory Field		374
2.1 Acquiring a Company		374
2.2 Primary Regulators		374
2.3 Restrictions on Foreign Investments		375
2.4 Antitrust Regulations		376
2.5 Labour Law Regulations		377
2.6 National Security Review		377
3. Recent Legal Developments		377
3.1 Significant Court Decisions or Legal Developments		377
3.2 Significant Changes to Takeover Law		378
4. Stakebuilding		379
4.1 Principal Stakebuilding Strategies		379
4.2 Material Shareholding Disclosure Threshold		379
4.3 Hurdles to Stakebuilding		380
4.4 Dealings in Derivatives		381
4.5 Filing/Reporting Obligations		381
4.6 Transparency		381
5. Negotiation Phase		381
5.1 Requirement to Disclose a Deal		381
5.2 Market Practice on Timing		381
5.3 Scope of Due Diligence		381
5.4 Standstills or Exclusivity		382
5.5 Definitive Agreements		382
6. Structuring		383
6.1 Length of Process for Acquisition/Sale		383
6.2 Mandatory Offer Threshold		383
6.3 Consideration		383
6.4 Common Conditions for a Takeover Offer		384
6.5 Minimum Acceptance Conditions		384
6.6 Requirement to Obtain Financing		385
6.7 Types of Deal Security Measures		385
6.8 Additional Governance Rights		386
6.9 Voting by Proxy		386
6.10 Squeeze-Out Mechanisms		386
6.11 Irrevocable Commitments		387
7. Disclosure		387
7.1 Making a Bid Public		387
7.2 Type of Disclosure Required		387
7.3 Producing Financial Statements		387
7.4 Transaction Documents		388
8. Duties of Directors		388
8.1 Principal Directors’ Duties		388
8.2 Special or Ad Hoc Committees		388
8.3 Business Judgement Rule		389
8.4 Independent Outside Advice		389
8.5 Conflicts of Interest		389
9. Defensive Measures		390
9.1 Hostile Tender Offers		390
9.2 Directors’ Use of Defensive Measures		390
9.3 Common Defensive Measures		390
9.4 Directors’ Duties		391
9.5 Directors’ Ability to “Just Say No”		391
10. Litigation		391
10.1 Frequency of Litigation		391
10.2 Stage of Deal		391
10.3 “Broken-Deal” Disputes		391
11. Activism		391
11.1 Shareholder Activism		391
11.2 Aims of Activists		392
11.3 Interference With Completion		392
1. Trends		404
1.1 M&A Market		404
1.2 Key Trends		404
1.3 Key Industries		405
2. Overview of Regulatory Field		405
2.1 Acquiring a Company		405
2.2 Primary Regulators		406
2.3 Restrictions on Foreign Investments		407
2.4 Antitrust Regulations		407
2.5 Labour Law Regulations		407
2.6 National Security Review		407
3. Recent Legal Developments		407
3.1 Significant Court Decisions or Legal Developments		407
3.2 Significant Changes to Takeover Law		408
4. Stakebuilding		409
4.1 Principal Stakebuilding Strategies		409
4.2 Material Shareholding Disclosure Threshold		409
4.3 Hurdles to Stakebuilding		409
4.4 Dealings in Derivatives		409
4.5 Filing/Reporting Obligations		409
4.6 Transparency		409
5. Negotiation Phase		409
5.1 Requirement to Disclose a Deal		409
5.2 Market Practice on Timing		410
5.3 Scope of Due Diligence		410
5.4 Standstills or Exclusivity		410
5.5 Definitive Agreements		410
6. Structuring		410
6.1 Length of Process for Acquisition/Sale		410
6.2 Mandatory Offer Threshold		410
6.3 Consideration		411
6.4 Common Conditions for a Takeover Offer		411
6.5 Minimum Acceptance Conditions		411
6.6 Requirement to Obtain Financing		411
6.7 Types of Deal Security Measures		411
6.8 Additional Governance Rights		412
6.9 Voting by Proxy		412
6.10 Squeeze-Out Mechanisms		412
6.11 Irrevocable Commitments		412
7. Disclosure		413
7.1 Making a Bid Public		413
7.2 Type of Disclosure Required		413
7.3 Producing Financial Statements		413
7.4 Transaction Documents		413
8. Duties of Directors		413
8.1 Principal Directors’ Duties		413
8.2 Special or Ad Hoc Committees		414
8.3 Business Judgement Rule		414
8.4 Independent Outside Advice		415
8.5 Conflicts of Interest		415
9. Defensive Measures		416
9.1 Hostile Tender Offers		416
9.2 Directors’ Use of Defensive Measures		416
9.3 Common Defensive Measures		416
9.4 Directors’ Duties		416
9.5 Directors’ Ability to “Just Say No”		416
10. Litigation		417
10.1 Frequency of Litigation		417
10.2 Stage of Deal		417
10.3 “Broken-Deal” Disputes		417
11. Activism		417
11.1 Shareholder Activism		417
11.2 Aims of Activists		417
11.3 Interference With Completion		417
1. Trends		427
1.1 M&A Market		427
1.2 Key Trends		427
1.3 Key Industries		427
2. Overview of Regulatory Field		427
2.1 Acquiring a Company		427
2.2 Primary Regulators		428
2.3 Restrictions on Foreign Investments		429
2.4 Antitrust Regulations		429
2.5 Labour Law Regulations		430
2.6 National Security Review		430
3. Recent Legal Developments		431
3.1 Significant Court Decisions or Legal Developments		431
3.2 Significant Changes to Takeover Law		431
4. Stakebuilding		432
4.1 Principal Stakebuilding Strategies		432
4.2 Material Shareholding Disclosure Threshold		432
4.3 Hurdles to Stakebuilding		432
4.4 Dealings in Derivatives		432
4.5 Filing/Reporting Obligations		433
4.6 Transparency		433
5. Negotiation Phase		433
5.1 Requirement to Disclose a Deal		433
5.2 Market Practice on Timing		434
5.3 Scope of Due Diligence		434
5.4 Standstills or Exclusivity		434
5.5 Definitive Agreements		434
6. Structuring		435
6.1 Length of Process for Acquisition/Sale		435
6.2 Mandatory Offer Threshold		435
6.3 Consideration		436
6.4 Common Conditions for a Takeover Offer		436
6.5 Minimum Acceptance Conditions		436
6.6 Requirement to Obtain Financing		437
6.7 Types of Deal Security Measures		437
6.8 Additional Governance Rights		438
6.9 Voting by Proxy		438
6.10 Squeeze-Out Mechanisms		438
6.11 Irrevocable Commitments		439
7. Disclosure		439
7.1 Making a Bid Public		439
7.2 Type of Disclosure Required		439
7.3 Producing Financial Statements		440
7.4 Transaction Documents		440
8. Duties of Directors		440
8.1 Principal Directors’ Duties		440
8.2 Special or Ad Hoc Committees		441
8.3 Business Judgement Rule		441
8.4 Independent Outside Advice		441
8.5 Conflicts of Interest		441
9. Defensive Measures		442
9.1 Hostile Tender Offers		442
9.2 Directors’ Use of Defensive Measures		442
9.3 Common Defensive Measures		442
9.4 Directors’ Duties		442
9.5 Directors’ Ability to “Just Say No”		442
10. Litigation		443
10.1 Frequency of Litigation		443
10.2 Stage of Deal		443
10.3 “Broken-Deal” Disputes		443
11. Activism		443
11.1 Shareholder Activism		443
11.2 Aims of Activists		443
11.3 Interference With Completion		443
1. Trends		457
1.1 M&A Market		457
1.2 Key Trends		457
1.3 Key Industries		457
2. Overview of Regulatory Field		458
2.1 Acquiring a Company		458
2.2 Primary Regulators		458
2.3 Restrictions on Foreign Investments		459
2.4 Antitrust Regulations		460
2.5 Labour Law Regulations		460
2.6 National Security Review		461
3. Recent Legal Developments		461
3.1 Significant Court Decisions or Legal Developments		461
3.2 Significant Changes to Takeover Law		462
4. Stakebuilding		462
4.1 Principal Stakebuilding Strategies		462
4.2 Material Shareholding Disclosure Threshold		462
4.3 Hurdles to Stakebuilding		463
4.4 Dealings in Derivatives		463
4.5 Filing/Reporting Obligations		463
4.6 Transparency		463
5. Negotiation Phase		464
5.1 Requirement to Disclose a Deal		464
5.2 Market Practice on Timing		464
5.3 Scope of Due Diligence		464
5.4 Standstills or Exclusivity		465
5.5 Definitive Agreements		465
6. Structuring		465
6.1 Length of Process for Acquisition/Sale		465
6.2 Mandatory Offer Threshold		465
6.3 Consideration		465
6.4 Common Conditions for a Takeover Offer		465
6.5 Minimum Acceptance Conditions		465
6.6 Requirement to Obtain Financing		466
6.7 Types of Deal Security Measures		466
6.8 Additional Governance Rights		466
6.9 Voting by Proxy		466
6.10 Squeeze-Out Mechanisms		466
6.11 Irrevocable Commitments		466
7. Disclosure		466
7.1 Making a Bid Public		466
7.2 Type of Disclosure Required		467
7.3 Producing Financial Statements		467
7.4 Transaction Documents		468
8. Duties of Directors		468
8.1 Principal Directors’ Duties		468
8.2 Special or Ad Hoc Committees		468
8.3 Business Judgement Rule		468
8.4 Independent Outside Advice		469
8.5 Conflicts of Interest		469
9. Defensive Measures		470
9.1 Hostile Tender Offers		470
9.2 Directors’ Use of Defensive Measures		470
9.3 Common Defensive Measures		470
9.4 Directors’ Duties		470
9.5 Directors’ Ability to “Just Say No”		470
10. Litigation		471
10.1 Frequency of Litigation		471
10.2 Stage of Deal		471
10.3 “Broken-Deal” Disputes		471
11. Activism		471
11.1 Shareholder Activism		471
11.2 Aims of Activists		471
11.3 Interference With Completion		472
1. Trends		484
1.1 M&A Market		484
1.2 Key Trends		484
1.3 Key Industries		486
2. Overview of Regulatory Field		486
2.1 Acquiring a Company		486
2.2 Primary Regulators		486
2.3 Restrictions on Foreign Investments		487
2.4 Antitrust Regulations		487
2.5 Labour Law Regulations		488
2.6 National Security Review		488
3. Recent Legal Developments		488
3.1 Significant Court Decisions or Legal Developments		488
3.2 Significant Changes to Takeover Law		489
4. Stakebuilding		489
4.1 Principal Stakebuilding Strategies		489
4.2 Material Shareholding Disclosure Threshold		490
4.3 Hurdles to Stakebuilding		490
4.4 Dealings in Derivatives		491
4.5 Filing/Reporting Obligations		491
4.6 Transparency		491
5. Negotiation Phase		491
5.1 Requirement to Disclose a Deal		491
5.2 Market Practice on Timing		491
5.3 Scope of Due Diligence		491
5.4 Standstills or Exclusivity		492
5.5 Definitive Agreements		492
6. Structuring		492
6.1 Length of Process for Acquisition/Sale		492
6.2 Mandatory Offer Threshold		493
6.3 Consideration		493
6.4 Common Conditions for a Takeover Offer		493
6.5 Minimum Acceptance Conditions		494
6.6 Requirement to Obtain Financing		494
6.7 Types of Deal Security Measures		494
6.8 Additional Governance Rights		495
6.9 Voting by Proxy		495
6.10 Squeeze-Out Mechanisms		495
6.11 Irrevocable Commitments		495
7. Disclosure		496
7.1 Making a Bid Public		496
7.2 Type of Disclosure Required		497
7.3 Producing Financial Statements		497
7.4 Transaction Documents		497
8. Duties of Directors		497
8.1 Principal Directors’ Duties		497
8.2 Special or Ad Hoc Committees		498
8.3 Business Judgement Rule		498
8.4 Independent Outside Advice		498
8.5 Conflicts of Interest		498
9. Defensive Measures		499
9.1 Hostile Tender Offers		499
9.2 Directors’ Use of Defensive Measures		499
9.3 Common Defensive Measures		499
9.4 Directors’ Duties		499
9.5 Directors’ Ability to “Just Say No”		500
10. Litigation		500
10.1 Frequency of Litigation		500
10.2 Stage of Deal		500
10.3 “Broken-Deal” Disputes		500
11. Activism		500
11.1 Shareholder Activism		500
11.2 Aims of Activists		501
11.3 Interference With Completion		501
1. Trends		509
1.1 M&A Market		509
1.2 Key Trends		509
1.3 Key Industries		509
2. Overview of Regulatory Field		509
2.1 Acquiring a Company		509
2.2 Primary Regulators		509
2.3 Restrictions on Foreign Investments		510
2.4 Antitrust Regulations		510
2.5 Labour Law Regulations		511
2.6 National Security Review		511
3. Recent Legal Developments		511
3.1 Significant Court Decisions or Legal Developments		511
3.2 Significant Changes to Takeover Law		512
4. Stakebuilding		512
4.1 Principal Stakebuilding Strategies		512
4.2 Material Shareholding Disclosure Threshold		512
4.3 Hurdles to Stakebuilding		512
4.4 Dealings in Derivatives		512
4.5 Filing/Reporting Obligations		512
4.6 Transparency		512
5. Negotiation Phase		513
5.1 Requirement to Disclose a Deal		513
5.2 Market Practice on Timing		513
5.3 Scope of Due Diligence		513
5.4 Standstills or Exclusivity		514
5.5 Definitive Agreements		514
6. Structuring		515
6.1 Length of Process for Acquisition/Sale		515
6.2 Mandatory Offer Threshold		515
6.3 Consideration		515
6.4 Common Conditions for a Takeover Offer		515
6.5 Minimum Acceptance Conditions		516
6.6 Requirement to Obtain Financing		516
6.7 Types of Deal Security Measures		516
6.8 Additional Governance Rights		516
6.9 Voting by Proxy		516
6.10 Squeeze-Out Mechanisms		516
6.11 Irrevocable Commitments		517
7. Disclosure		517
7.1 Making a Bid Public		517
7.2 Type of Disclosure Required		517
7.3 Producing Financial Statements		517
7.4 Transaction Documents		518
8. Duties of Directors		518
8.1 Principal Directors’ Duties		518
8.2 Special or Ad Hoc Committees		518
8.3 Business Judgement Rule		518
8.4 Independent Outside Advice		518
8.5 Conflicts of Interest		518
9. Defensive Measures		518
9.1 Hostile Tender Offers		518
9.2 Directors’ Use of Defensive Measures		519
9.3 Common Defensive Measures		519
9.4 Directors’ Duties		519
9.5 Directors’ Ability to “Just Say No”		519
10. Litigation		519
10.1 Frequency of Litigation		519
10.2 Stage of Deal		519
10.3 “Broken-Deal” Disputes		519
11. Activism		519
11.1 Shareholder Activism		519
11.2 Aims of Activists		519
11.3 Interference With Completion		519
1. Trends		525
1.1 M&A Market		525
1.2 Key Trends		525
1.3 Key Industries		525
2. Overview of Regulatory Field		525
2.1 Acquiring a Company		525
2.2 Primary Regulators		525
2.3 Restrictions on Foreign Investments		526
2.4 Antitrust Regulations		526
2.5 Labour Law Regulations		527
2.6 National Security Review		528
3. Recent Legal Developments		528
3.1 Significant Court Decisions or Legal Developments		528
3.2 Significant Changes to Takeover Law		529
4. Stakebuilding		529
4.1 Principal Stakebuilding Strategies		529
4.2 Material Shareholding Disclosure Threshold		529
4.3 Hurdles to Stakebuilding		529
4.4 Dealings in Derivatives		529
4.5 Filing/Reporting Obligations		529
4.6 Transparency		529
5. Negotiation Phase		530
5.1 Requirement to Disclose a Deal		530
5.2 Market Practice on Timing		530
5.3 Scope of Due Diligence		530
5.4 Standstills or Exclusivity		531
5.5 Definitive Agreements		531
6. Structuring		531
6.1 Length of Process for Acquisition/Sale		531
6.2 Mandatory Offer Threshold		531
6.3 Consideration		531
6.4 Common Conditions for a Takeover Offer		532
6.5 Minimum Acceptance Conditions		532
6.6 Requirement to Obtain Financing		532
6.7 Types of Deal Security Measures		532
6.8 Additional Governance Rights		533
6.9 Voting by Proxy		533
6.10 Squeeze-Out Mechanisms		533
6.11 Irrevocable Commitments		534
7. Disclosure		534
7.1 Making a Bid Public		534
7.2 Type of Disclosure Required		535
7.3 Producing Financial Statements		535
7.4 Transaction Documents		535
8. Duties of Directors		535
8.1 Principal Directors’ Duties		535
8.2 Special or Ad Hoc Committees		535
8.3 Business Judgement Rule		536
8.4 Independent Outside Advice		536
8.5 Conflicts of Interest		536
9. Defensive Measures		536
9.1 Hostile Tender Offers		536
9.2 Directors’ Use of Defensive Measures		536
9.3 Common Defensive Measures		536
9.4 Directors’ Duties		537
9.5 Directors’ Ability to “Just Say No”		537
10. Litigation		537
10.1 Frequency of Litigation		537
10.2 Stage of Deal		537
10.3 “Broken-Deal” Disputes		537
11. Activism		537
11.1 Shareholder Activism		537
11.2 Aims of Activists		537
11.3 Interference With Completion		538
1. Trends		542
1.1 M&A Market		542
1.2 Key Trends		542
1.3 Key Industries		543
2. Overview of Regulatory Field		543
2.1 Acquiring a Company		543
2.2 Primary Regulators		544
2.3 Restrictions on Foreign Investments		544
2.4 Antitrust Regulations		545
2.5 Labour Law Regulations		545
2.6 National Security Review		545
3. Recent Legal Developments		546
3.1 Significant Court Decisions or Legal Developments		546
3.2 Significant Changes to Takeover Law		546
4. Stakebuilding		546
4.1 Principal Stakebuilding Strategies		546
4.2 Material Shareholding Disclosure Threshold		547
4.3 Hurdles to Stakebuilding		547
4.4 Dealings in Derivatives		547
4.5 Filing/Reporting Obligations		547
4.6 Transparency		548
5. Negotiation Phase		548
5.1 Requirement to Disclose a Deal		548
5.2 Market Practice on Timing		548
5.3 Scope of Due Diligence		549
5.4 Standstills or Exclusivity		549
5.5 Definitive Agreements		549
6. Structuring		550
6.1 Length of Process for Acquisition/Sale		550
6.2 Mandatory Offer Threshold		550
6.3 Consideration		550
6.4 Common Conditions for a Takeover Offer		551
6.5 Minimum Acceptance Conditions		551
6.6 Requirement to Obtain Financing		552
6.7 Types of Deal Security Measures		552
6.8 Additional Governance Rights		552
6.9 Voting by Proxy		552
6.10 Squeeze-Out Mechanisms		552
6.11 Irrevocable Commitments		553
7. Disclosure		553
7.1 Making a Bid Public		553
7.2 Type of Disclosure Required		554
7.3 Producing Financial Statements		554
7.4 Transaction Documents		555
8. Duties of Directors		555
8.1 Principal Directors’ Duties		555
8.2 Special or Ad Hoc Committees		555
8.3 Business Judgement Rule		556
8.4 Independent Outside Advice		556
8.5 Conflicts of Interest		556
9. Defensive Measures		556
9.1 Hostile Tender Offers		556
9.2 Directors’ Use of Defensive Measures		557
9.3 Common Defensive Measures		557
9.4 Directors’ Duties		557
9.5 Directors’ Ability to “Just Say No”		557
10. Litigation		557
10.1 Frequency of Litigation		557
10.2 Stage of Deal		557
10.3 “Broken-Deal” Disputes		557
11. Activism		558
11.1 Shareholder Activism		558
11.2 Aims of Activists		558
11.3 Interference With Completion		558
1. Trends		572
1.1 M&A Market		572
1.2 Key Trends		572
1.3 Key Industries		572
2. Overview of Regulatory Field		572
2.1 Acquiring a Company		572
2.2 Primary Regulators		573
2.3 Restrictions on Foreign Investments		573
2.4 Antitrust Regulations		573
2.5 Labour Law Regulations		574
2.6 National Security Review		574
3. Recent Legal Developments		575
3.1 Significant Court Decisions or Legal Developments		575
3.2 Significant Changes to Takeover Law		575
4. Stakebuilding		576
4.1 Principal Stakebuilding Strategies		576
4.2 Material Shareholding Disclosure Threshold		576
4.3 Hurdles to Stakebuilding		576
4.4 Dealings in Derivatives		576
4.5 Filing/Reporting Obligations		577
4.6 Transparency		577
5. Negotiation Phase		577
5.1 Requirement to Disclose a Deal		577
5.2 Market Practice on Timing		577
5.3 Scope of Due Diligence		578
5.4 Standstills or Exclusivity		578
5.5 Definitive Agreements		578
6. Structuring		578
6.1 Length of Process for Acquisition/Sale		578
6.2 Mandatory Offer Threshold		579
6.3 Consideration		579
6.4 Common Conditions for a Takeover Offer		579
6.5 Minimum Acceptance Conditions		580
6.6 Requirement to Obtain Financing		580
6.7 Types of Deal Security Measures		580
6.8 Additional Governance Rights		580
6.9 Voting by Proxy		580
6.10 Squeeze-Out Mechanisms		581
6.11 Irrevocable Commitments		581
7. Disclosure		581
7.1 Making a Bid Public		581
7.2 Type of Disclosure Required		582
7.3 Producing Financial Statements		582
7.4 Transaction Documents		583
8. Duties of Directors		583
8.1 Principal Directors’ Duties		583
8.2 Special or Ad Hoc Committees		584
8.3 Business Judgement Rule		584
8.4 Independent Outside Advice		584
8.5 Conflicts of Interest		584
9. Defensive Measures		585
9.1 Hostile Tender Offers		585
9.2 Directors’ Use of Defensive Measures		585
9.3 Common Defensive Measures		585
9.4 Directors’ Duties		585
9.5 Directors’ Ability to “Just Say No”		586
10. Litigation		586
10.1 Frequency of Litigation		586
10.2 Stage of Deal		586
10.3 “Broken-Deal” Disputes		587
11. Activism		587
11.1 Shareholder Activism		587
11.2 Aims of Activists		587
11.3 Interference With Completion		587
1. Trends		592
1.1 M&A Market		592
1.2 Key Trends		592
1.3 Key Industries		593
2. Overview of Regulatory Field		593
2.1 Acquiring a Company		593
2.2 Primary Regulators		593
2.3 Restrictions on Foreign Investments		594
2.4 Antitrust Regulations		595
2.5 Labour Law Regulations		596
2.6 National Security Review		597
3. Recent Legal Developments		597
3.1 Significant Court Decisions or Legal Developments		597
3.2 Significant Changes to Takeover Law		599
4. Stakebuilding		600
4.1 Principal Stakebuilding Strategies		600
4.2 Material Shareholding Disclosure Threshold		600
4.3 Hurdles to Stakebuilding		600
4.4 Dealings in Derivatives		601
4.5 Filing/Reporting Obligations		601
4.6 Transparency		601
5. Negotiation Phase		601
5.1 Requirement to Disclose a Deal		601
5.2 Market Practice on Timing		602
5.3 Scope of Due Diligence		602
5.4 Standstills or Exclusivity		602
5.5 Definitive Agreements		602
6. Structuring		602
6.1 Length of Process for Acquisition/Sale		602
6.2 Mandatory Offer Threshold		603
6.3 Consideration		603
6.4 Common Conditions for a Takeover Offer		603
6.5 Minimum Acceptance Conditions		604
6.6 Requirement to Obtain Financing		604
6.7 Types of Deal Security Measures		604
6.8 Additional Governance Rights		604
6.9 Voting by Proxy		604
6.10 Squeeze-Out Mechanisms		605
6.11 Irrevocable Commitments		605
7. Disclosure		605
7.1 Making a Bid Public		605
7.2 Type of Disclosure Required		606
7.3 Producing Financial Statements		606
7.4 Transaction Documents		606
8. Duties of Directors		606
8.1 Principal Directors’ Duties		606
8.2 Special or Ad Hoc Committees		607
8.3 Business Judgement Rule		607
8.4 Independent Outside Advice		607
8.5 Conflicts of Interest		607
9. Defensive Measures		607
9.1 Hostile Tender Offers		607
9.2 Directors’ Use of Defensive Measures		608
9.3 Common Defensive Measures		608
9.4 Directors’ Duties		608
9.5 Directors’ Ability to “Just Say No”		608
10. Litigation		609
10.1 Frequency of Litigation		609
10.2 Stage of Deal		609
10.3 “Broken-Deal” Disputes		609
11. Activism		609
11.1 Shareholder Activism		609
11.2 Aims of Activists		609
11.3 Interference With Completion		609
1. Trends		620
1.1 M&A Market		620
1.2 Key Trends		620
1.3 Key Industries		620
2. Overview of Regulatory Field		620
2.1 Acquiring a Company		620
2.2 Primary Regulators		620
2.3 Restrictions on Foreign Investments		620
2.4 Antitrust Regulations		620
2.5 Labour Law Regulations		621
2.6 National Security Review		621
3. Recent Legal Developments		621
3.1 Significant Court Decisions or Legal Developments		621
3.2 Significant Changes to Takeover Law		621
4. Stakebuilding		621
4.1 Principal Stakebuilding Strategies		621
4.2 Material Shareholding Disclosure Threshold		622
4.3 Hurdles to Stakebuilding		622
4.4 Dealings in Derivatives		622
4.5 Filing/Reporting Obligations		622
4.6 Transparency		622
5. Negotiation Phase		622
5.1 Requirement to Disclose a Deal		622
5.2 Market Practice on Timing		623
5.3 Scope of Due Diligence		623
5.4 Standstills or Exclusivity		623
5.5 Definitive Agreements		623
6. Structuring		623
6.1 Length of Process for Acquisition/Sale		623
6.2 Mandatory Offer Threshold		623
6.3 Consideration		623
6.4 Common Conditions for a Takeover Offer		624
6.5 Minimum Acceptance Conditions		624
6.6 Requirement to Obtain Financing		624
6.7 Types of Deal Security Measures		624
6.8 Additional Governance Rights		624
6.9 Voting by Proxy		624
6.10 Squeeze-Out Mechanisms		624
6.11 Irrevocable Commitments		625
7. Disclosure		625
7.1 Making a Bid Public		625
7.2 Type of Disclosure Required		625
7.3 Producing Financial Statements		625
7.4 Transaction Documents		625
8. Duties of Directors		625
8.1 Principal Directors’ Duties		625
8.2 Special or Ad Hoc Committees		625
8.3 Business Judgement Rule		626
8.4 Independent Outside Advice		626
8.5 Conflicts of Interest		626
9. Defensive Measures		626
9.1 Hostile Tender Offers		626
9.2 Directors’ Use of Defensive Measures		626
9.3 Common Defensive Measures		626
9.4 Directors’ Duties		626
9.5 Directors’ Ability to “Just Say No”		626
10. Litigation		626
10.1 Frequency of Litigation		626
10.2 Stage of Deal		627
10.3 “Broken-Deal” Disputes		627
11. Activism		627
11.1 Shareholder Activism		627
11.2 Aims of Activists		627
11.3 Interference With Completion		627
1. Trends		640
1.1 M&A Market		640
1.2 Key Trends		640
1.3 Key Industries		640
2. Overview of Regulatory Field		640
2.1 Acquiring a Company		640
2.2 Primary Regulators		640
2.3 Restrictions on Foreign Investments		641
2.4 Antitrust Regulations		641
2.5 Labour Law Regulations		641
2.6 National Security Review		642
3. Recent Legal Developments		642
3.1 Significant Court Decisions or Legal Developments		642
3.2 Significant Changes to Takeover Law		643
4. Stakebuilding		643
4.1 Principal Stakebuilding Strategies		643
4.2 Material Shareholding Disclosure Threshold		643
4.3 Hurdles to Stakebuilding		643
4.4 Dealings in Derivatives		644
4.5 Filing/Reporting Obligations		644
4.6 Transparency		644
5. Negotiation Phase		644
5.1 Requirement to Disclose a Deal		644
5.2 Market Practice on Timing		645
5.3 Scope of Due Diligence		645
5.4 Standstills or Exclusivity		645
5.5 Definitive Agreements		645
6. Structuring		646
6.1 Length of Process for Acquisition/Sale		646
6.2 Mandatory Offer Threshold		646
6.3 Consideration		647
6.4 Common Conditions for a Takeover Offer		647
6.5 Minimum Acceptance Conditions		648
6.6 Requirement to Obtain Financing		648
6.7 Types of Deal Security Measures		648
6.8 Additional Governance Rights		648
6.9 Voting by Proxy		648
6.10 Squeeze-Out Mechanisms		648
6.11 Irrevocable Commitments		649
7. Disclosure		649
7.1 Making a Bid Public		649
7.2 Type of Disclosure Required		649
7.3 Producing Financial Statements		650
7.4 Transaction Documents		650
8. Duties of Directors		650
8.1 Principal Directors’ Duties		650
8.2 Special or Ad Hoc Committees		651
8.3 Business Judgement Rule		651
8.4 Independent Outside Advice		652
8.5 Conflicts of Interest		652
9. Defensive Measures		652
9.1 Hostile Tender Offers		652
9.2 Directors’ Use of Defensive Measures		652
9.3 Common Defensive Measures		653
9.4 Directors’ Duties		653
9.5 Directors’ Ability to “Just Say No”		653
10. Litigation		653
10.1 Frequency of Litigation		653
10.2 Stage of Deal		653
10.3 “Broken-Deal” Disputes		653
11. Activism		654
11.1 Shareholder Activism		654
11.2 Aims of Activists		654
11.3 Interference With Completion		655
1. Trends		667
1.1 M&A Market		667
1.2 Key Trends		667
1.3 Key Industries		667
2. Overview of Regulatory Field		667
2.1 Acquiring a Company		667
2.2 Primary Regulators		667
2.3 Restrictions on Foreign Investments		668
2.4 Antitrust Regulations		669
2.5 Labour Law Regulations		669
2.6 National Security Review		669
3. Recent Legal Developments		669
3.1 Significant Court Decisions or Legal Developments		669
3.2 Significant Changes to Takeover Law		670
4. Stakebuilding		670
4.1 Principal Stakebuilding Strategies		670
4.2 Material Shareholding Disclosure Threshold		670
4.3 Hurdles to Stakebuilding		670
4.4 Dealings in Derivatives		671
4.5 Filing/Reporting Obligations		671
4.6 Transparency		671
5. Negotiation Phase		671
5.1 Requirement to Disclose a Deal		671
5.2 Market Practice on Timing		672
5.3 Scope of Due Diligence		672
5.4 Standstills or Exclusivity		672
5.5 Definitive Agreements		672
6. Structuring		672
6.1 Length of Process for Acquisition/Sale		672
6.2 Mandatory Offer Threshold		673
6.3 Consideration		673
6.4 Common Conditions for a Takeover Offer		673
6.5 Minimum Acceptance Conditions		673
6.6 Requirement to Obtain Financing		673
6.7 Types of Deal Security Measures		673
6.8 Additional Governance Rights		673
6.9 Voting by Proxy		674
6.10 Squeeze-Out Mechanisms		674
6.11 Irrevocable Commitments		674
7. Disclosure		674
7.1 Making a Bid Public		674
7.2 Type of Disclosure Required		674
7.3 Producing Financial Statements		675
7.4 Transaction Documents		675
8. Duties of Directors		675
8.1 Principal Directors’ Duties		675
8.2 Special or Ad Hoc Committees		676
8.3 Business Judgement Rule		676
8.4 Independent Outside Advice		676
8.5 Conflicts of Interest		677
9. Defensive Measures		677
9.1 Hostile Tender Offers		677
9.2 Directors’ Use of Defensive Measures		678
9.3 Common Defensive Measures		678
9.4 Directors’ Duties		678
9.5 Directors’ Ability to “Just Say No”		678
10. Litigation		678
10.1 Frequency of Litigation		678
10.2 Stage of Deal		678
10.3 “Broken-Deal” Disputes		678
11. Activism		678
11.1 Shareholder Activism		678
11.2 Aims of Activists		678
11.3 Interference With Completion		678
1. Trends		689
1.1 M&A Market		689
1.2 Key Trends		690
1.3 Key Industries		691
2. Overview of Regulatory Field		691
2.1 Acquiring a Company		691
2.2 Primary Regulators		691
2.3 Restrictions on Foreign Investments		692
2.4 Antitrust Regulations		693
2.5 Labour Law Regulations		693
2.6 National Security Review		694
3. Recent Legal Developments		695
3.1 Significant Court Decisions or Legal Developments		695
3.2 Significant Changes to Takeover Law		695
4. Stakebuilding		696
4.1 Principal Stakebuilding Strategies		696
4.2 Material Shareholding Disclosure Threshold		696
4.3 Hurdles to Stakebuilding		697
4.4 Dealings in Derivatives		698
4.5 Filing/Reporting Obligations		698
4.6 Transparency		698
5. Negotiation Phase		698
5.1 Requirement to Disclose a Deal		698
5.2 Market Practice on Timing		699
5.3 Scope of Due Diligence		699
5.4 Standstills or Exclusivity		700
5.5 Definitive Agreements		700
6. Structuring		700
6.1 Length of Process for Acquisition/Sale		700
6.2 Mandatory Offer Threshold		701
6.3 Consideration		701
6.4 Common Conditions for a Takeover Offer		702
6.5 Minimum Acceptance Conditions		702
6.6 Requirement to Obtain Financing		703
6.7 Types of Deal Security Measures		703
6.8 Additional Governance Rights		703
6.9 Voting by Proxy		704
6.10 Squeeze-Out Mechanisms		704
6.11 Irrevocable Commitments		704
7. Disclosure		704
7.1 Making a Bid Public		704
7.2 Type of Disclosure Required		705
7.3 Producing Financial Statements		705
7.4 Transaction Documents		705
8. Duties of Directors		706
8.1 Principal Directors’ Duties		706
8.2 Special or Ad Hoc Committees		706
8.3 Business Judgement Rule		706
8.4 Independent Outside Advice		707
8.5 Conflicts of Interest		707
9. Defensive Measures		707
9.1 Hostile Tender Offers		707
9.2 Directors’ Use of Defensive Measures		707
9.3 Common Defensive Measures		708
9.4 Directors’ Duties		709
9.5 Directors’ Ability to “Just Say No”		709
10. Litigation		709
10.1 Frequency of Litigation		709
10.2 Stage of Deal		710
10.3 “Broken-Deal” Disputes		710
11. Activism		711
11.1 Shareholder Activism		711
11.2 Aims of Activists		711
11.3 Interference With Completion		712
1. Trends		722
1.1 M&A Market		722
1.2 Key Trends		722
1.3 Key Industries		723
2. Overview of Regulatory Field		723
2.1 Acquiring a Company		723
2.2 Primary Regulators		724
2.3 Restrictions on Foreign Investments		725
2.4 Antitrust Regulations		726
2.5 Labour Law Regulations		727
2.6 National Security Review		727
3. Recent Legal Developments		727
3.1 Significant Court Decisions or Legal Developments		727
3.2 Significant Changes to Takeover Law		727
4. Stakebuilding		727
4.1 Principal Stakebuilding Strategies		727
4.2 Material Shareholding Disclosure Threshold		728
4.3 Hurdles to Stakebuilding		729
4.4 Dealings in Derivatives		729
4.5 Filing/Reporting Obligations		729
4.6 Transparency		729
5. Negotiation Phase		729
5.1 Requirement to Disclose a Deal		729
5.2 Market Practice on Timing		730
5.3 Scope of Due Diligence		730
5.4 Standstills or Exclusivity		730
5.5 Definitive Agreements		731
6. Structuring		732
6.1 Length of Process for Acquisition/Sale		732
6.2 Mandatory Offer Threshold		732
6.3 Consideration		732
6.4 Common Conditions for a Takeover Offer		733
6.5 Minimum Acceptance Conditions		733
6.6 Requirement to Obtain Financing		733
6.7 Types of Deal Security Measures		733
6.8 Additional Governance Rights		734
6.9 Voting by Proxy		734
6.10 Squeeze-Out Mechanisms		735
6.11 Irrevocable Commitments		736
7. Disclosure		736
7.1 Making a Bid Public		736
7.2 Type of Disclosure Required		736
7.3 Producing Financial Statements		737
7.4 Transaction Documents		737
8. Duties of Directors		737
8.1 Principal Directors’ Duties		737
8.2 Special or Ad Hoc Committees		737
8.3 Business Judgement Rule		737
8.4 Independent Outside Advice		738
8.5 Conflicts of Interest		738
9. Defensive Measures		738
9.1 Hostile Tender Offers		738
9.2 Directors’ Use of Defensive Measures		738
9.3 Common Defensive Measures		738
9.4 Directors’ Duties		739
9.5 Directors’ Ability to “Just Say No”		739
10. Litigation		739
10.1 Frequency of Litigation		739
10.2 Stage of Deal		739
10.3 “Broken-Deal” Disputes		739
11. Activism		740
11.1 Shareholder Activism		740
11.2 Aims of Activists		740
11.3 Interference With Completion		740
1. Trends		753
1.1 M&A Market		753
1.2 Key Trends		753
1.3 Key Industries		754
2. Overview of Regulatory Field		754
2.1 Acquiring a Company		754
2.2 Primary Regulators		754
2.3 Restrictions on Foreign Investments		755
2.4 Antitrust Regulations		755
2.5 Labour Law Regulations		755
2.6 National Security Review		756
3. Recent Legal Developments		756
3.1 Significant Court Decisions or Legal Developments		756
3.2 Significant Changes to Takeover Law		757
4. Stakebuilding		757
4.1 Principal Stakebuilding Strategies		757
4.2 Material Shareholding Disclosure Threshold		758
4.3 Hurdles to Stakebuilding		758
4.4 Dealings in Derivatives		758
4.5 Filing/Reporting Obligations		758
4.6 Transparency		758
5. Negotiation Phase		759
5.1 Requirement to Disclose a Deal		759
5.2 Market Practice on Timing		759
5.3 Scope of Due Diligence		759
5.4 Standstills or Exclusivity		759
5.5 Definitive Agreements		760
6. Structuring		760
6.1 Length of Process for Acquisition/Sale		760
6.2 Mandatory Offer Threshold		760
6.3 Consideration		761
6.4 Common Conditions for a Takeover Offer		761
6.5 Minimum Acceptance Conditions		761
6.6 Requirement to Obtain Financing		762
6.7 Types of Deal Security Measures		762
6.8 Additional Governance Rights		762
6.9 Voting by Proxy		763
6.10 Squeeze-Out Mechanisms		763
6.11 Irrevocable Commitments		763
7. Disclosure		763
7.1 Making a Bid Public		763
7.2 Type of Disclosure Required		764
7.3 Producing Financial Statements		764
7.4 Transaction Documents		765
8. Duties of Directors		765
8.1 Principal Directors’ Duties		765
8.2 Special or Ad Hoc Committees		766
8.3 Business Judgement Rule		766
8.4 Independent Outside Advice		766
8.5 Conflicts of Interest		766
9. Defensive Measures		766
9.1 Hostile Tender Offers		766
9.2 Directors’ Use of Defensive Measures		767
9.3 Common Defensive Measures		767
9.4 Directors’ Duties		767
9.5 Directors’ Ability to “Just Say No”		768
10. Litigation		768
10.1 Frequency of Litigation		768
10.2 Stage of Deal		768
10.3 “Broken-Deal” Disputes		768
11. Activism		768
11.1 Shareholder Activism		768
11.2 Aims of Activists		768
11.3 Interference With Completion		768
1. Trends		781
1.1 M&A Market		781
1.2 Key Trends		781
1.3 Key Industries		781
2. Overview of Regulatory Field		782
2.1 Acquiring a Company		782
2.2 Primary Regulators		782
2.3 Restrictions on Foreign Investments		782
2.4 Antitrust Regulations		782
2.5 Labour Law Regulations		783
2.6 National Security Review		784
3. Recent Legal Developments		784
3.1 Significant Court Decisions or Legal Developments		784
3.2 Significant Changes to Takeover Law		785
4. Stakebuilding		785
4.1 Principal Stakebuilding Strategies		785
4.2 Material Shareholding Disclosure Threshold		785
4.3 Hurdles to Stakebuilding		786
4.4 Dealings in Derivatives		786
4.5 Filing/Reporting Obligations		786
4.6 Transparency		786
5. Negotiation Phase		787
5.1 Requirement to Disclose a Deal		787
5.2 Market Practice on Timing		787
5.3 Scope of Due Diligence		787
5.4 Standstills or Exclusivity		787
5.5 Definitive Agreements		788
6. Structuring		788
6.1 Length of Process for Acquisition/Sale		788
6.2 Mandatory Offer Threshold		788
6.3 Consideration		788
6.4 Common Conditions for a Takeover Offer		788
6.5 Minimum Acceptance Conditions		789
6.6 Requirement to Obtain Financing		789
6.7 Types of Deal Security Measures		789
6.8 Additional Governance Rights		789
6.9 Voting by Proxy		789
6.10 Squeeze-Out Mechanisms		789
6.11 Irrevocable Commitments		790
7. Disclosure		790
7.1 Making a Bid Public		790
7.2 Type of Disclosure Required		790
7.3 Producing Financial Statements		790
7.4 Transaction Documents		790
8. Duties of Directors		790
8.1 Principal Directors’ Duties		790
8.2 Special or Ad Hoc Committees		791
8.3 Business Judgement Rule		791
8.4 Independent Outside Advice		791
8.5 Conflicts of Interest		791
9. Defensive Measures		791
9.1 Hostile Tender Offers		791
9.2 Directors’ Use of Defensive Measures		791
9.3 Common Defensive Measures		791
9.4 Directors’ Duties		792
9.5 Directors’ Ability to “Just Say No”		792
10. Litigation		792
10.1 Frequency of Litigation		792
10.2 Stage of Deal		792
10.3 “Broken-Deal” Disputes		792
11. Activism		792
11.1 Shareholder Activism		792
11.2 Aims of Activists		792
11.3 Interference With Completion		792
1. Trends		796
1.1 M&A Market		796
1.2 Key Trends		796
1.3 Key Industries		797
2. Overview of Regulatory Field		797
2.1 Acquiring a Company		797
2.2 Primary Regulators		798
2.3 Restrictions on Foreign Investments		799
2.4 Antitrust Regulations		800
2.5 Labour Law Regulations		801
2.6 National Security Review		801
3. Recent Legal Developments		802
3.1 Significant Court Decisions or Legal Developments		802
3.2 Significant Changes to Takeover Law		802
4. Stakebuilding		803
4.1 Principal Stakebuilding Strategies		803
4.2 Material Shareholding Disclosure Threshold		803
4.3 Hurdles to Stakebuilding		803
4.4 Dealings in Derivatives		804
4.5 Filing/Reporting Obligations		804
4.6 Transparency		805
5. Negotiation Phase		805
5.1 Requirement to Disclose a Deal		805
5.2 Market Practice on Timing		805
5.3 Scope of Due Diligence		805
5.4 Standstills or Exclusivity		806
5.5 Definitive Agreements		806
6. Structuring		807
6.1 Length of Process for Acquisition/Sale		807
6.2 Mandatory Offer Threshold		808
6.3 Consideration		808
6.4 Common Conditions for a Takeover Offer		808
6.5 Minimum Acceptance Conditions		808
6.6 Requirement to Obtain Financing		809
6.7 Types of Deal Security Measures		809
6.8 Additional Governance Rights		809
6.9 Voting by Proxy		809
6.10 Squeeze-Out Mechanisms		809
6.11 Irrevocable Commitments		810
7. Disclosure		810
7.1 Making a Bid Public		810
7.2 Type of Disclosure Required		811
7.3 Producing Financial Statements		811
7.4 Transaction Documents		811
8. Duties of Directors		812
8.1 Principal Directors’ Duties		812
8.2 Special or Ad Hoc Committees		812
8.3 Business Judgement Rule		812
8.4 Independent Outside Advice		812
8.5 Conflicts of Interest		813
9. Defensive Measures		813
9.1 Hostile Tender Offers		813
9.2 Directors’ Use of Defensive Measures		814
9.3 Common Defensive Measures		814
9.4 Directors’ Duties		814
9.5 Directors’ Ability to “Just Say No”		815
10. Litigation		815
10.1 Frequency of Litigation		815
10.2 Stage of Deal		815
10.3 “Broken-Deal” Disputes		816
11. Activism		816
11.1 Shareholder Activism		816
11.2 Aims of Activists		816
11.3 Interference With Completion		816
1. Trends		830
1.1 M&A Market		830
1.2 Key Trends		830
1.3 Key Industries		831
2. Overview of Regulatory Field		831
2.1 Acquiring a Company		831
2.2 Primary Regulators		832
2.3 Restrictions on Foreign Investments		832
2.4 Antitrust Regulations		833
2.5 Labour Law Regulations		834
2.6 National Security Review		834
3. Recent Legal Developments		835
3.1 Significant Court Decisions or Legal Developments		835
3.2 Significant Changes to Takeover Law		835
4. Stakebuilding		836
4.1 Principal Stakebuilding Strategies		836
4.2 Material Shareholding Disclosure Threshold		836
4.3 Hurdles to Stakebuilding		836
4.4 Dealings in Derivatives		837
4.5 Filing/Reporting Obligations		837
4.6 Transparency		837
5. Negotiation Phase		837
5.1 Requirement to Disclose a Deal		837
5.2 Market Practice on Timing		838
5.3 Scope of Due Diligence		838
5.4 Standstills or Exclusivity		838
5.5 Definitive Agreements		839
6. Structuring		839
6.1 Length of Process for Acquisition/Sale		839
6.2 Mandatory Offer Threshold		839
6.3 Consideration		839
6.4 Common Conditions for a Takeover Offer		840
6.5 Minimum Acceptance Conditions		840
6.6 Requirement to Obtain Financing		840
6.7 Types of Deal Security Measures		840
6.8 Additional Governance Rights		841
6.9 Voting by Proxy		841
6.10 Squeeze-Out Mechanisms		841
6.11 Irrevocable Commitments		841
7. Disclosure		842
7.1 Making a Bid Public		842
7.2 Type of Disclosure Required		842
7.3 Producing Financial Statements		842
7.4 Transaction Documents		842
8. Duties of Directors		843
8.1 Principal Directors’ Duties		843
8.2 Special or Ad Hoc Committees		843
8.3 Business Judgement Rule		843
8.4 Independent Outside Advice		843
8.5 Conflicts of Interest		843
9. Defensive Measures		844
9.1 Hostile Tender Offers		844
9.2 Directors’ Use of Defensive Measures		844
9.3 Common Defensive Measures		844
9.4 Directors’ Duties		844
9.5 Directors’ Ability to “Just Say No”		844
10. Litigation		845
10.1 Frequency of Litigation		845
10.2 Stage of Deal		845
10.3 “Broken-Deal” Disputes		845
11. Activism		845
11.1 Shareholder Activism		845
11.2 Aims of Activists		846
11.3 Interference With Completion		846
1. Trends		858
1.1 M&A Market		858
1.2 Key Trends		858
1.3 Key Industries		858
2. Overview of Regulatory Field		859
2.1 Acquiring a Company		859
2.2 Primary Regulators		860
2.3 Restrictions on Foreign Investments		860
2.4 Antitrust Regulations		861
2.5 Labour Law Regulations		861
2.6 National Security Review		862
3. Recent Legal Developments		862
3.1 Significant Court Decisions or Legal Developments		862
3.2 Significant Changes to Takeover Law		863
4. Stakebuilding		863
4.1 Principal Stakebuilding Strategies		863
4.2 Material Shareholding Disclosure Threshold		863
4.3 Hurdles to Stakebuilding		864
4.4 Dealings in Derivatives		864
4.5 Filing/Reporting Obligations		864
4.6 Transparency		865
5. Negotiation Phase		865
5.1 Requirement to Disclose a Deal		865
5.2 Market Practice on Timing		865
5.3 Scope of Due Diligence		865
5.4 Standstills or Exclusivity		866
5.5 Definitive Agreements		866
6. Structuring		866
6.1 Length of Process for Acquisition/Sale		866
6.2 Mandatory Offer Threshold		866
6.3 Consideration		867
6.4 Common Conditions for a Takeover Offer		867
6.5 Minimum Acceptance Conditions		867
6.6 Requirement to Obtain Financing		867
6.7 Types of Deal Security Measures		868
6.8 Additional Governance Rights		868
6.9 Voting by Proxy		868
6.10 Squeeze-Out Mechanisms		868
6.11 Irrevocable Commitments		868
7. Disclosure		869
7.1 Making a Bid Public		869
7.2 Type of Disclosure Required		869
7.3 Producing Financial Statements		869
7.4 Transaction Documents		869
8. Duties of Directors		870
8.1 Principal Directors’ Duties		870
8.2 Special or Ad Hoc Committees		870
8.3 Business Judgement Rule		870
8.4 Independent Outside Advice		871
8.5 Conflicts of Interest		871
9. Defensive Measures		871
9.1 Hostile Tender Offers		871
9.2 Directors’ Use of Defensive Measures		871
9.3 Common Defensive Measures		872
9.4 Directors’ Duties		872
9.5 Directors’ Ability to “Just Say No”		872
10. Litigation		872
10.1 Frequency of Litigation		872
10.2 Stage of Deal		872
10.3 “Broken-Deal” Disputes		872
11. Activism		872
11.1 Shareholder Activism		872
11.2 Aims of Activists		872
11.3 Interference With Completion		872
1. Trends		882
1.1 M&A Market		882
1.2 Key Trends		882
1.3 Key Industries		882
2. Overview of Regulatory Field		882
2.1 Acquiring a Company		882
2.2 Primary Regulators		882
2.3 Restrictions on Foreign Investments		883
2.4 Antitrust Regulations		883
2.5 Labour Law Regulations		883
2.6 National Security Review		883
3. Recent Legal Developments		884
3.1 Significant Court Decisions or Legal Developments		884
3.2 Significant Changes to Takeover Law		884
4. Stakebuilding		884
4.1 Principal Stakebuilding Strategies		884
4.2 Material Shareholding Disclosure Threshold		884
4.3 Hurdles to Stakebuilding		885
4.4 Dealings in Derivatives		885
4.5 Filing/Reporting Obligations		885
4.6 Transparency		885
5. Negotiation Phase		885
5.1 Requirement to Disclose a Deal		885
5.2 Market Practice on Timing		886
5.3 Scope of Due Diligence		886
5.4 Standstills or Exclusivity		886
5.5 Definitive Agreements		886
6. Structuring		887
6.1 Length of Process for Acquisition/Sale		887
6.2 Mandatory Offer Threshold		887
6.3 Consideration		887
6.4 Common Conditions for a Takeover Offer		888
6.5 Minimum Acceptance Conditions		888
6.6 Requirement to Obtain Financing		888
6.7 Types of Deal Security Measures		888
6.8 Additional Governance Rights		888
6.9 Voting by Proxy		888
6.10 Squeeze-Out Mechanisms		888
6.11 Irrevocable Commitments		889
7. Disclosure		889
7.1 Making a Bid Public		889
7.2 Type of Disclosure Required		889
7.3 Producing Financial Statements		889
7.4 Transaction Documents		889
8. Duties of Directors		889
8.1 Principal Directors’ Duties		889
8.2 Special or Ad Hoc Committees		890
8.3 Business Judgement Rule		890
8.4 Independent Outside Advice		890
8.5 Conflicts of Interest		890
9. Defensive Measures		890
9.1 Hostile Tender Offers		890
9.2 Directors’ Use of Defensive Measures		890
9.3 Common Defensive Measures		890
9.4 Directors’ Duties		890
9.5 Directors’ Ability to “Just Say No”		890
10. Litigation		891
10.1 Frequency of Litigation		891
10.2 Stage of Deal		891
10.3 “Broken-Deal” Disputes		891
11. Activism		891
11.1 Shareholder Activism		891
11.2 Aims of Activists		891
11.3 Interference With Completion		891
1. Trends		899
1.1 M&A Market		899
1.2 Key Trends		899
1.3 Key Industries		900
2. Overview of Regulatory Field		900
2.1 Acquiring a Company		900
2.2 Primary Regulators		901
2.3 Restrictions on Foreign Investments		902
2.4 Antitrust Regulations		902
2.5 Labour Law Regulations		903
2.6 National Security Review		903
3. Recent Legal Developments		903
3.1 Significant Court Decisions or Legal Developments		903
3.2 Significant Changes to Takeover Law		904
4. Stakebuilding		904
4.1 Principal Stakebuilding Strategies		904
4.2 Material Shareholding Disclosure Threshold		904
4.3 Hurdles to Stakebuilding		905
4.4 Dealings in Derivatives		905
4.5 Filing/Reporting Obligations		905
4.6 Transparency		905
5. Negotiation Phase		906
5.1 Requirement to Disclose a Deal		906
5.2 Market Practice on Timing		906
5.3 Scope of Due Diligence		906
5.4 Standstills or Exclusivity		906
5.5 Definitive Agreements		907
6. Structuring		907
6.1 Length of Process for Acquisition/Sale		907
6.2 Mandatory Offer Threshold		907
6.3 Consideration		907
6.4 Common Conditions for a Takeover Offer		908
6.5 Minimum Acceptance Conditions		908
6.6 Requirement to Obtain Financing		908
6.7 Types of Deal Security Measures		908
6.8 Additional Governance Rights		908
6.9 Voting by Proxy		908
6.10 Squeeze-Out Mechanisms		909
6.11 Irrevocable Commitments		909
7. Disclosure		909
7.1 Making a Bid Public		909
7.2 Type of Disclosure Required		909
7.3 Producing Financial Statements		909
7.4 Transaction Documents		910
8. Duties of Directors		910
8.1 Principal Directors’ Duties		910
8.2 Special or Ad Hoc Committees		911
8.3 Business Judgement Rule		911
8.4 Independent Outside Advice		911
8.5 Conflicts of Interest		911
9. Defensive Measures		911
9.1 Hostile Tender Offers		911
9.2 Directors’ Use of Defensive Measures		912
9.3 Common Defensive Measures		912
9.4 Directors’ Duties		912
9.5 Directors’ Ability to “Just Say No”		913
10. Litigation		913
10.1 Frequency of Litigation		913
10.2 Stage of Deal		913
10.3 “Broken-Deal” Disputes		913
11. Activism		913
11.1 Shareholder Activism		913
11.2 Aims of Activists		914
11.3 Interference With Completion		914
1. Trends		926
1.1 M&A Market		926
1.2 Key Trends		926
1.3 Key Industries		926
2. Overview of Regulatory Field		927
2.1 Acquiring a Company		927
2.2 Primary Regulators		928
2.3 Restrictions on Foreign Investments		929
2.4 Antitrust Regulations		929
2.5 Labour Law Regulations		930
2.6 National Security Review		931
3. Recent Legal Developments		931
3.1 Significant Court Decisions or Legal Developments		931
3.2 Significant Changes to Takeover Law		931
4. Stakebuilding		932
4.1 Principal Stakebuilding Strategies		932
4.2 Material Shareholding Disclosure Threshold		932
4.3 Hurdles to Stakebuilding		932
4.4 Dealings in Derivatives		932
4.5 Filing/Reporting Obligations		933
4.6 Transparency		933
5. Negotiation Phase		933
5.1 Requirement to Disclose a Deal		933
5.2 Market Practice on Timing		933
5.3 Scope of Due Diligence		933
5.4 Standstills or Exclusivity		933
5.5 Definitive Agreements		934
6. Structuring		934
6.1 Length of Process for Acquisition/Sale		934
6.2 Mandatory Offer Threshold		934
6.3 Consideration		934
6.4 Common Conditions for a Takeover Offer		935
6.5 Minimum Acceptance Conditions		935
6.6 Requirement to Obtain Financing		935
6.7 Types of Deal Security Measures		935
6.8 Additional Governance Rights		935
6.9 Voting by Proxy		936
6.10 Squeeze-Out Mechanisms		936
6.11 Irrevocable Commitments		936
7. Disclosure		936
7.1 Making a Bid Public		936
7.2 Type of Disclosure Required		937
7.3 Producing Financial Statements		937
7.4 Transaction Documents		937
8. Duties of Directors		938
8.1 Principal Directors’ Duties		938
8.2 Special or Ad Hoc Committees		938
8.3 Business Judgement Rule		938
8.4 Independent Outside Advice		939
8.5 Conflicts of Interest		939
9. Defensive Measures		939
9.1 Hostile Tender Offers		939
9.2 Directors’ Use of Defensive Measures		939
9.3 Common Defensive Measures		940
9.4 Directors’ Duties		940
9.5 Directors’ Ability to “Just Say No”		940
10. Litigation		940
10.1 Frequency of Litigation		940
10.2 Stage of Deal		940
10.3 “Broken-Deal” Disputes		940
11. Activism		941
11.1 Shareholder Activism		941
11.2 Aims of Activists		941
11.3 Interference With Completion		941
1. Trends		946
1.1 M&A Market		946
1.2 Key Trends		946
1.3 Key Industries		946
2. Overview of Regulatory Field		946
2.1 Acquiring a Company		946
2.2 Primary Regulators		947
2.3 Restrictions on Foreign Investments		947
2.4 Antitrust Regulations		948
2.5 Labour Law Regulations		948
2.6 National Security Review		948
3. Recent Legal Developments		949
3.1 Significant Court Decisions or Legal Developments		949
3.2 Significant Changes to Takeover Law		949
4. Stakebuilding		950
4.1 Principal Stakebuilding Strategies		950
4.2 Material Shareholding Disclosure Threshold		950
4.3 Hurdles to Stakebuilding		950
4.4 Dealings in Derivatives		951
4.5 Filing/Reporting Obligations		951
4.6 Transparency		951
5. Negotiation Phase		952
5.1 Requirement to Disclose a Deal		952
5.2 Market Practice on Timing		953
5.3 Scope of Due Diligence		953
5.4 Standstills or Exclusivity		953
5.5 Definitive Agreements		953
6. Structuring		954
6.1 Length of Process for Acquisition/Sale		954
6.2 Mandatory Offer Threshold		954
6.3 Consideration		954
6.4 Common Conditions for a Takeover Offer		955
6.5 Minimum Acceptance Conditions		955
6.6 Requirement to Obtain Financing		956
6.7 Types of Deal Security Measures		956
6.8 Additional Governance Rights		956
6.9 Voting by Proxy		957
6.10 Squeeze-Out Mechanisms		957
6.11 Irrevocable Commitments		957
7. Disclosure		958
7.1 Making a Bid Public		958
7.2 Type of Disclosure Required		958
7.3 Producing Financial Statements		958
7.4 Transaction Documents		959
8. Duties of Directors		959
8.1 Principal Directors’ Duties		959
8.2 Special or Ad Hoc Committees		959
8.3 Business Judgement Rule		960
8.4 Independent Outside Advice		960
8.5 Conflicts of Interest		960
9. Defensive Measures		961
9.1 Hostile Tender Offers		961
9.2 Directors’ Use of Defensive Measures		961
9.3 Common Defensive Measures		961
9.4 Directors’ Duties		961
9.5 Directors’ Ability to “Just Say No”		961
10. Litigation		961
10.1 Frequency of Litigation		961
10.2 Stage of Deal		962
10.3 “Broken-Deal” Disputes		962
11. Activism		962
11.1 Shareholder Activism		962
11.2 Aims of Activists		963
11.3 Interference With Completion		963
1. Trends		975
1.1 M&A Market		975
1.2 Key Trends		975
1.3 Key Industries		975
2. Overview of Regulatory Field		975
2.1 Acquiring a Company		975
2.2 Primary Regulators		975
2.3 Restrictions on Foreign Investments		976
2.4 Antitrust Regulations		976
2.5 Labour Law Regulations		976
2.6 National Security Review		976
3. Recent Legal Developments		976
3.1 Significant Court Decisions or Legal Developments		976
3.2 Significant Changes to Takeover Law		976
4. Stakebuilding		977
4.1 Principal Stakebuilding Strategies		977
4.2 Material Shareholding Disclosure Threshold		977
4.3 Hurdles to Stakebuilding		977
4.4 Dealings in Derivatives		978
4.5 Filing/Reporting Obligations		978
4.6 Transparency		978
5. Negotiation Phase		978
5.1 Requirement to Disclose a Deal		978
5.2 Market Practice on Timing		978
5.3 Scope of Due Diligence		978
5.4 Standstills or Exclusivity		979
5.5 Definitive Agreements		979
6. Structuring		979
6.1 Length of Process for Acquisition/Sale		979
6.2 Mandatory Offer Threshold		979
6.3 Consideration		980
6.4 Common Conditions for a Takeover Offer		980
6.5 Minimum Acceptance Conditions		980
6.6 Requirement to Obtain Financing		980
6.7 Types of Deal Security Measures		980
6.8 Additional Governance Rights		981
6.9 Voting by Proxy		981
6.10 Squeeze-Out Mechanisms		981
6.11 Irrevocable Commitments		981
7. Disclosure		981
7.1 Making a Bid Public		981
7.2 Type of Disclosure Required		981
7.3 Producing Financial Statements		982
7.4 Transaction Documents		982
8. Duties of Directors		982
8.1 Principal Directors’ Duties		982
8.2 Special or Ad Hoc Committees		982
8.3 Business Judgement Rule		983
8.4 Independent Outside Advice		983
8.5 Conflicts of Interest		983
9. Defensive Measures		983
9.1 Hostile Tender Offers		983
9.2 Directors’ Use of Defensive Measures		983
9.3 Common Defensive Measures		983
9.4 Directors’ Duties		983
9.5 Directors’ Ability to “Just Say No”		984
10. Litigation		984
10.1 Frequency of Litigation		984
10.2 Stage of Deal		984
10.3 “Broken-Deal” Disputes		984
11. Activism		984
11.1 Shareholder Activism		984
11.2 Aims of Activists		984
11.3 Interference With Completion		984
1. Trends		989
1.1 M&A Market		989
1.2 Key Trends		989
1.3 Key Industries		989
2. Overview of Regulatory Field		989
2.1 Acquiring a Company		989
2.2 Primary Regulators		990
2.3 Restrictions on Foreign Investments		990
2.4 Antitrust Regulations		991
2.5 Labour Law Regulations		991
2.6 National Security Review		992
3. Recent Legal Developments		992
3.1 Significant Court Decisions or Legal Developments		992
3.2 Significant Changes to Takeover Law		992
4. Stakebuilding		993
4.1 Principal Stakebuilding Strategies		993
4.2 Material Shareholding Disclosure Threshold		993
4.3 Hurdles to Stakebuilding		993
4.4 Dealings in Derivatives		993
4.5 Filing/Reporting Obligations		993
4.6 Transparency		994
5. Negotiation Phase		994
5.1 Requirement to Disclose a Deal		994
5.2 Market Practice on Timing		995
5.3 Scope of Due Diligence		995
5.4 Standstills or Exclusivity		995
5.5 Definitive Agreements		995
6. Structuring		996
6.1 Length of Process for Acquisition/Sale		996
6.2 Mandatory Offer Threshold		996
6.3 Consideration		998
6.4 Common Conditions for a Takeover Offer		999
6.5 Minimum Acceptance Conditions		999
6.6 Requirement to Obtain Financing		1000
6.7 Types of Deal Security Measures		1000
6.8 Additional Governance Rights		1000
6.9 Voting by Proxy		1001
6.10 Squeeze-Out Mechanisms		1001
6.11 Irrevocable Commitments		1001
7. Disclosure		1002
7.1 Making a Bid Public		1002
7.2 Type of Disclosure Required		1002
7.3 Producing Financial Statements		1002
7.4 Transaction Documents		1003
8. Duties of Directors		1003
8.1 Principal Directors’ Duties		1003
8.2 Special or Ad Hoc Committees		1003
8.3 Business Judgement Rule		1004
8.4 Independent Outside Advice		1004
8.5 Conflicts of Interest		1005
9. Defensive Measures		1005
9.1 Hostile Tender Offers		1005
9.2 Directors’ Use of Defensive Measures		1006
9.3 Common Defensive Measures		1007
9.4 Directors’ Duties		1007
9.5 Directors’ Ability to “Just Say No”		1007
10. Litigation		1008
10.1 Frequency of Litigation		1008
10.2 Stage of Deal		1008
10.3 “Broken-Deal” Disputes		1008
11. Activism		1008
11.1 Shareholder Activism		1008
11.2 Aims of Activists		1008
11.3 Interference With Completion		1009

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