M&A – Guidelines for the Parties When Carrying Out the Procedures (P1)

In this discussion, we will explore some essential guidelines for parties when carrying out M&A procedures, shedding light on key considerations and offering practical advice for a successful merger or acquisition.

1. Overview

The global and local economic uncertainties also led foreign investors to adopt a more cautious approach towards M&A transactions in Vietnam. Consequently, the total value of inbound M&A transactions decreased by 75% to USD 2.5 billion in 2022, as there were fewer mega-deals taking place. Among the active investors, Singaporean investors held the top position, followed by those from South Korea and Spain.

2. Key for M&A Parties

a. Key

– The thresholds for notification can vary depending on industry-specific criteria related to factors such as total revenue, total assets, transaction value, or combined market share.
– It is important for M&A parties to be prepared for a thorough review process and anticipate potential challenges that may arise from competitors.
– During the review process, it is crucial to consider market definition, calculate market share, and assess market concentration.

b. Checklist for M&A Parties:

– Evaluate the connection between their transactions and Vietnam’s market.
– Assess whether pre-notification consultation with the competition authority is necessary.
– Determine market shares by gathering reliable market data.
– Create a comprehensive and well-organized filing, including all necessary documentation and information.
– Be prepared for a lengthier and more thorough second phase scrutiny.
– Obtain business intelligence to effectively prepare for any defenses.
– Establish a plan to address any competition concerns that may arise during the review process.
– Monitor the merger process closely and maintain open communication with the competition authority.

3. Conclusion

In conclusion, understanding and following the guidelines for parties involved in mergers and acquisitions (M&A) procedures is crucial for a successful transaction. These guidelines, therefore, provide a framework for conducting due diligence, evaluating risks and opportunities, and navigating regulatory requirements.
#mergersandacquisitions

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Harley Miller Law Firm “HMLF”
Head office: 14th floor, HM Town building, 412 Nguyen Thi Minh Khai, Ward 05, District 3, Ho Chi Minh City.
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Email: miller@hmlf.vn