Part III Regulation of Financial Products, 9 Takeovers and Mergers

Subject(s):

Financial regulation

This chapter focuses on the law in Hong Kong as it relates to takeovers and mergers of companies. While commercial objectives vary, at the core of any takeover or merger is an intention to consolidate or obtain control of another company. This may be affected in a number of ways, including acquiring control of voting rights; through an acquisition of shares by private contract or public offer; via the mechanism of corporate law or specific legislation; or by the transfer of a business by means of an asset transaction. This chapter focuses on transactions governed by the Code on Takeovers and Mergers (‘Takeovers Code’), which affects the manner in which commercial objectives can be executed and which imposes obligations on persons involved in such transactions. Overall, the Takeovers Code is well accepted in the Hong Kong market and reflects an effective and well-developed system addressing this area of commercial activity.