Restriction on merger and acquisition of foreign-invested enterprises has been loosened and would adopt system of filing for further reference after application.

In order to accelerate merger and acquisition of enterprises, Ministry of Economic Affairs announced yesterday that clause for foreigner’s investment will be amended. Foreign-invested enterprises that must file an application currently except industry that invested in Mainland China and within negative list will be adopted system of filing for further reference after application. Ministry of Economic Affairs will simultaneously loosen restriction on foreign enterprises against merger and acquisition and open stockholder of the company to vote through Internet.

The Business Mergers and Acquisitions Law had been enforced for three years, there are 288 merger and acquisition cases in total, and the amount has exceeded NT$150,000,000,000. Most of them are small to medium enterprises, 54 percent of merger and acquisition cases are small to medium enterprises which capital are below NT$500,000,000, while enterprises with over NT$2,000,000,000 capital occupy 23 percent of merger and acquisition cases. In order to enhance international competition of industry of Taiwan, the government will loose restrictions on merger and acquisition of enterprises through release of restriction, but details should wait for discussion. (2005.3)

CYJ/CHA