In August, chipmaker Broadcom’s proposed $5.5bn acquisition of telecoms company Brocade Communications Systems went smoothly through the Chinese merger approval part of the process — but on one condition: a promise by the company to abide by Chinese market trading conditions.
The symbolic concession from the two US companies signalled a broader point: until recently, it has been mainly the US and the EU that exercise a right to vet deals involving companies from other jurisdictions, but China increasingly wants a say in global mergers.
As multinationals become more “multi”, they must file for a merger review in a growing list of jurisdictions. Companies file to receive approval for a deal to go through in every country, including China, for which it meets filing requirements.