A merger and acquisition is an essential strategy for companies looking to increase the size of their operations or to increase the amount of money they earn. The process is also beneficial for companies undergoing internal restructurings and for domestic conglomerates. Hong Kong has seen an increase in M&A transactions over the past few years. According to a report by Latham & Watkins, the majority of M&A transactions in the region involve either the buying or merging of a company and/or its subsidiaries. This could be due to financial issues or a strategic decision to boost a business.

M&A deals in the country are subject to the Companies Ordinance as well as the Competition Law. The antitrust law does not provide a general regime for controlling mergers, but it does provide two „safe-harbor thresholds“ to evaluate the possibility of competition concerns that hong kong mergers and acquisitions companies laws market could result from mergers that have been completed. The government is also reviewing its current framework of antitrust laws.

The M&A market in hong kong is a multi-jurisdictional market and it is crucial to understand local legal, commercial realities and market practices to ensure that the process is smooth and efficient. It is also necessary for you to be aware of the many problems and risks that may be encountered in cross-border M&A transactions. This includes: