Japan Electric pass 5 billion dollar Hao buys Anjisi hard

Trainee reporter Jiang Hong Kong March 28, this is the Japanese advertising giant electricity, to the Chinese Ministry of Commerce deadline, regardless of antitrust censorship through or not, electricity and Britain anjisi this 5 billion dollar sky-high acquisition, will be completed as scheduled. Last July, the Japanese electric Anjisi, with its almost irresistible offer, will have a half century history of the UK's income capsule, which was seen as the "reverse attack" of the eastern advertising industry. However, long antitrust scrutiny from Chinese regulators has dragged the deal. In its latest announcement on March 22, the company confirmed that it was still awaiting the results of the China Commerce ministry's Antitrust review, which will come into effect on March 28, with approval from the UK Listing board and the London Stock Exchange. In response to the inquiry, Anjisi said the ministry's ruling would not affect the transaction process. The foreign fund manager, who declined to be named, said the unilateral disregard for legal regulation by the Chinese Government was unique in the history of international mergers and acquisitions. As with access to European and American antitrust approvals, the approval from the Ministry of Commerce of China is also a legal condition for the transaction. In accordance with the anti-monopoly Law of China, where the operator violates the regulations and has reached and implemented a monopoly agreement, the law enforcement agencies shall have the right to order the parties to stop the merger, confiscate the illegal income, and place a fine of 1% to 10% of the sales in the previous year. Even if a monopoly agreement has not been implemented, a fine of less than $500,000 may be imposed. Japan Electric is the world's largest single advertising company, the turnover of 22 consecutive years ranked first in the world, into China for more than 10 years. 2012 the first September revenue of 3.1 billion U.S. dollars, an increase of 4.5%, net profit growth of 48.1% to 250 million U.S. dollars. 2011, the Japanese company's branch in China, Beijing electric revenue 5.733 billion yuan, ranked 2011 in China Advertising Enterprises (non-media Services) advertising turnover third. The British Anjisi is a London listed company, is the world's fastest growing media marketing company, its own Carat media (Vizeum), Ambus (Iprospect) and other top five marketing communications brands, business in Europe and the United States and Asia-Pacific market, in recent years, the main focus on digital media and new media services. 2011 gross income of 1.135 billion pounds, operating profit of 197 million pounds. In the first half of 2012, earnings of 597 million pounds, operating profits of 87 million pounds, including Asia-Pacific income growth of 17% to 184 million U.S. dollars. Sources said that after the merger of the electricity and Anjisi, its advertising market share in China will rise from the original fifth, sixth to third, media and non-media business integration or threaten the development of local advertising companies. Approval of the third phase of deadlock last November 6, Japan's electricity agency announced that mergers and acquisitions have passed antitrust scrutiny by regulators such as the European Union, the UK and the US. The following day, China's Ministry of Commerce formally accepted both applications, opened the commonly known as "396" approval process. The reporter learned from the source that the approval has now entered the third stage, that is, "the official question of mergers and acquisitions may offendNational Anti-competition regulations, companies must provide credible measures to remove the Ministry of Commerce's doubts about market monopolies. Weishin, a partner of the Dacheng law firm and deputy director of the former Beijing Law Association competition and Antitrust Professional committee, said that China's antitrust review is divided into three stages. The initial investigation lasts 30 days from the date of formal acceptance, and most of the transactions apparently without monopoly suspicion are approved. If there is an official antitrust concern, the company must submit corrective action within 90 days of the second phase to eliminate reasonable suspicion arising from market share, pricing mechanism or patent rights. If the two sides fail to negotiate, the enterprise will apply for an extension of 60 days to enter the final stage of the game. Reporters tried to contact the Ministry of Commerce's Antitrust division, the official response to the case is still in the process of review, will respond later. But as of press, the Ministry of Commerce has not given a formal reply. Shusaku Kannan, a spokesman for Japan's headquarters in Tokyo, declined to answer the inquiry on the basis of the British merger and Acquisition Committee's restrictions. He said the company was still actively mediating with the Chinese Ministry of Commerce to obtain antitrust approvals by March 28, but stressed that it had no intention of extending the date of the deal's entry into force. Earlier, due to the Lunar New Year holiday, the CLP has been scheduled to extend the February 28 deadline of one months. Foreign deal reporter previously quoted Ministry of Commerce officials as saying that any merger deal before official approval would violate China's anti-monopoly law, which is also not allowed. Another official said companies could choose whether to disregard China's anti-monopoly laws, but the Ministry of Commerce would strictly follow the procedure. Weishin Analysis: "The national two sessions, the Ministry of Commerce high-level transition, shortage of manpower and the Spring Festival holiday, have objectively extended the approval process, but this can not become the Japanese electric rush to enter the pretext, any threat of speech may make the original simple transaction approval unlimited delay, or even vetoed." The penalty can be 1% of China's retail sales last year, or 10% of its global income, and law enforcement agencies have absolute latitude in antitrust penalties. In extreme cases, the ministry could even apply for a court order to freeze some of the assets of two companies in China. Weishin told the newspaper. The big ad "Wolf"? Throughout the world's advertising industry, WPP and Martin Soro represent two distinct development ideas, and WPP's helm is that "growth can be bought." "Japan Electric general rule is the representative of endogenous development." However, due to over-reliance on Japan, it is urgent to find new business growth. Tadashi Ishii, CEO of the group, said Anjisi, after several years of development has been recognized as the best digital communications and independent media companies, after the merger, the new group will become the Asia-Pacific market leader, China's market growth potential is enormous. While mergers and acquisitions are a major trend in the advertising industry, such deals still make markets jittery. Caozhifang, the managing director of McCann SGM Works, said to our correspondent that after the merger and acquisition of Anjisi, the Chinese media business, especially the new media market short board, improving the bargaining power of advertising and media procurement, and the development of local media companies is more negative. May 29 Last year, the State Administration for Industry and Commerce prepared the "Advertising industry development" Twelve-Five "plan" clearly encouraged, the strength of the domestic large-scale media and advertising enterprises through mergers, equity participation in the form of a global service capabilities of the large-scale advertising groups. In Caozhifang's view, the "electronic + Anjisi" combination has not only increased market share, but also the scale effect on the individual smaller local media service providers, brought challenges. Shouyuki, the managing Director and senior vice president of Rhodes Public relations China, points out that foreign advertising giants such as WPP and Yang Lions have "never stopped taking the pace of acquisitions" and that the success of such a large acquisition would only lead to more mergers. In fact, electricity and anjisi are not the only international mergers and acquisitions that have been postponed. The source pointed out that China's Ministry of Commerce as a new antitrust vetting and approval agencies, involving foreign mergers and acquisitions generally relatively slow. The reporter checks the record, the Japanese pill red company May 29, 2012 buys the American grain Processing Enterprise Gavilon Group LLC because the Ministry of Commerce's Ultra long examination, has not been able to complete; February 2, 2012, Glencore's 35 billion dollar takeover of Xstrata is also subject to China's antitrust scrutiny, It even drew hedge funds to use the uncertainty of approval to carry out arbitrage transactions.