Dealmakers pursuing M&As in China have always been conscious of the importance of regulatory approvals. This is exemplified by the prohibition of Coca-Cola's attempted takeover of Chinese fruit juice maker Huiyuan by the PRC antitrust authority, and Carlyle's failure to obtain foreign investment approval, after a protracted three-year wait, for its proposed acquisition of the Xugong machinery company.
On the other side of the Pacific, during its second attempt at acquiring US assets, after the aborted co-investment with Bain Capital a few years ago, Huawei found itself again battling uphill with an unexpected intervention by the US Committee on Foreign Investment (CFIUS), leading to quirky twists and turns in which Huawei surprisingly upped the ante only to later withdraw its application. Meanwhile in Canada, an old 1985 Investment Canada Act was invoked to block BHP Billiton's attempted takeover of Potash Corporation of Saskatchewan.
On February 3 2011, China's State...