The first published ruling by China’s new antitrust regime has triggered concern that authorities could use the laws to shield domestic industry from foreign competition. In November China’s commerce ministry (Mofcom) – in the first publication of a merger decision since anti-monopoly laws were tightened in August – waved through InBev’s $52bn acquisition of Anheuser-Busch saying it would not adversely affect competition in the domestic beer market. The high-profile global deal required Chinese approval because Belgium-based InBev and Anheuser-Busch of the US generated large enough sales on the mainland to warrant a probe. But, in a single-page ruling, Mofcom also imposed restrictions that will prevent InBev acquiring further interests in four key companies in the Chinese beer market. Lawyers said that, by imposing future conditions on a deal that did not harm competition, Mofcom had broken new ground in international antitrust decision-making and thus, could alter the attitudes of overseas companies to M&A in China.

This entry was posted by Gwen Robinson on Monday, December 1st, 2008 at 5:44 and is filed under Capital markets, M&A. Tagged with Anheuser-Busch InBev, china. Edit this entry.