MOFCOM Imposes Divestiture Obligation in Its Approval of Private Equity Transaction

On 31 October 2011, China's Ministry of Commerce ("MOFCOM") cleared the acquisition of Savio Macchine Tessili S.p.A. ("Savio") by Alpha Private Equity Fund V ("Alpha 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 of the People's Republic of China ("AML"), but it is the first conditional decision relating to a private equity ("PE") investor.  The decision also sheds some light on how MOFCOM deals with minority interests under the merger control rules contained in the AML.

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