King & Wood Mallesons

Asia-Pacific 100 position: 2

Relaxation of NDRC rules has immediate impact, but uncertainty remains if there is only ever one anointed Chinese bidder

By Jin Xiong, Paul Schroder and Edward Tudor

Developments in China’s Tsinghua Unigroup’s bid for HKSE-listed RDA Microelectronics show the immediate impact of December’s relaxation of outbound investment regulations in China. However, uncertainty remains around the application of the ‘one Chinese bidder’ policy.

Tsinghua Unigroup entered into a merger agreement with semiconductor producer RDA for $18.50 (£11.16) per American depository share in November 2013. The deal was struck between the parties despite the fact that the powerful National Development and Reform Commission (NDRC) had already granted preliminary approval to rival state-owned bidder Shanghai Pudong Science and Technology Investment (SPSTI) for its September offer of $15.50 per RDA American depository share.

Reports from China at the time suggested that NDRC was unlikely to grant preliminary approval to Tsinghua even though Tsinghua expressed confidence it would secure NDRC approval and committed to pay RDA a $70m termination fee if it could not. However, on 2 December, in a move designed to reduce and decentralise approval powers, the Chinese government announced that only investments over $1bn or involving sensitive countries, regions or industries will require NDRC approval. Investments valued between $300m and $1bn will still need to file with NDRC and obtain a filing receipt…

If you are registered and logged in to the site, click on the link below to read the rest of the Pillsbury briefing. If not, please register or sign in with your details below.  

Sign in or Register to continue reading this article

Sign in


It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer


Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.


Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.


Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Analysis from The Lawyer

View more analysis from The Lawyer


Level 61, Governor Phillip Tower
1 Farrer Place
NSW 2000

Jurisdiction: PRC/Australia
No. of offices: 19
No. of qualified lawyers: 1,634