Office Managing Partner
MOFCOM Imposes Divestiture Obligation in Its Approval of Private Equity Transaction
07 November 2011
On 31 October 2011, China's Ministry of Commerce (MOFCOM) cleared the acquisition of Savio Macchine Tessili S.p.A. by Alpha Private Equity Fund V subject to certain conditions. This is the eighth occasion on which MOFCOM has attached conditions to its decision approving a transaction under the Anti-Monopoly Law (AML), but it is the first conditional decision relating to a private equity investor. The decision also sheds some light on how MOFCOM deals with minority interests under the merger control rules contained in the AML.