China National Radio reported that, according to an inside source from the Ministry of Industry and Information Technology, the State Council will soon introduce the “State Council’s opinion on further optimizing the market environment for the merger and acquisition of State Owned Enterprises.” The opinion will provide merger and acquisition guidance mainly to the steel, cement, vessel, photovoltaic, and baby formula industries. The article said that the current structure of these industries is in small scattered locations. There is no centralized planning; they often are deficient; and they have a serious excess production capacity. In these industries, these issues have been a major obstacle to reform. However, mergers and acquisitions in these industries also face serious difficulties, including heavy merger and acquisition taxes, financing, and a lengthy approval process. The opinion requires that the state should simplify the approval process while instituting policies that will provide optimized solutions on these issues.
Source: China National Radio, February 2, 2014
http://china.cnr.cn/ygxw/201402/t20140201_514778867.shtml