Report: China increasingly uses merger reviews to make demands of US companies
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China's antitrust regulator "is holding back its required green light for mergers that involve American companies as a technology war with Washington intensifies," according to a Wall Street Journal report today. China's State Administration for Market Regulation (SAMR) has asked companies seeking merger approvals to "make available in China products they sell in other countries-an attempt to counter the US's increased export controls targeting China," the report said.
"Chinese regulators recently have slowed down their merger reviews of a number of proposed acquisitions by US companies, including Intel Corp.'s $5.2 billion takeover of Israel-based Tower Semiconductor Ltd. and chip maker MaxLinear Inc.'s $3.8 billion purchase of Silicon Motion Technology of Taiwan, according to people close to the process," the WSJ wrote.
Microsoft's $68.7 billion purchase of Activision Blizzard is "subject to Beijing's lengthy merger scrutiny" because China last year "declined the companies' request to file the deal under a simplified and expedited procedure," the WSJ report said. The Microsoft/Activision deal also faces antitrust scrutiny in the UK and EU.