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Asiamoney repurposed the earlier GlobalCapital Asia article noting the potential impact on Asia’s leveraged and acquisition financing market with European Union’s plan to screen foreign direct investment more closely. The article quoted Hallam Chow, a partner and head of projects for China at Mayer Brown.

  • Chow noted, “Unlike CFIUS [the Committee on Foreign Investment in the US], the proposed EU rules are not an overriding regulation that would block potential inbound acquisitions, but rather a reporting and monitoring mechanism to share information between EU member states. It does not impinge on an individual country’s ability to approve or reject mergers.”
  • He added that any interested Chinese buyers looking at potential acquisitions right now would need to take a close look at the new regulations and delay their decision-making until there is clarity on the final ruling. “They will also need to give more time for merger approvals than before, as Chinese buyers tend to be quite optimistic on timing, but given the new guidelines it is no longer the case that you can push it through in two or three months,” Chow said.