COL/UTX: SAMR Exchanges Indicate No China-Specific Concerns

Event Driven Takeaways

  • A review by China’s State Administration for Market Regulation, or SAMR, remained focused on global concerns rather than China-specific issues as of last week, Event Driven has learned.
  • The dealmakers are expected to stick with the global-market definition even if China-specific issues arise. A June 2012 decision by MOFCOM on Goodrich/United Technologies shows that the regulator agreed to define the relevant geographic market as global because of industry practices that customers source aircraft parts internationally.

China’s SAMR investigation of the proposed purchase by United Technologies of Rockwell Collins has not raised China-specific concerns as of last week, Event Driven has learned. Questions from the regulator have remained centered on the global market, Event Driven has also learned. In addition, there has not been any sign of a slowdown of the review process caused by the evolving trade conflicts between China and the U.S., with correspondences from SAMR continuing to run their usual course. As