According to the "Anti-Monopoly Law of the People's Republic of China", when the scale of mergers and acquisitions reaches a certain level, the provisions of the law regarding "concentration of undertakings" may be met. Before the merger and acquisition transaction is implemented, a countermeasure needs to be submitted. The monopoly agency conducts an examination to determine whether it constitutes a monopoly.

Article 21: If the concentration of business operators reaches the reporting standards stipulated by the State Council, the business operators shall report to the anti-monopoly law enforcement agency of the State Council in advance. If the concentration is not reported, the concentration shall not be implemented.

Concentration of operators refers to the following situations:

(1) Merger of operators;

(2) Operators acquire control by acquiring equity or assets. Control rights of other operators;

(3) Operators obtain control rights over other operators through contracts or other means or are able to exert decisive influence on other operators.

According to the "Regulations of the State Council on the Standards for Declaration of Concentrations of Business Operators"

Article 3: If the concentration of business operators reaches one of the following standards, the operator shall declare in advance to the competent commerce department of the State Council, Concentrations that have not been declared shall not be implemented:

(1) The total global turnover of all operators participating in the concentration in the previous fiscal year exceeds 10 billion yuan, and at least two of them have the previous The turnover in China in the fiscal year exceeds RMB 400 million;

(2) The total turnover in China of all operators participating in the concentration in the previous fiscal year exceeds RMB 2 billion, and among them The turnover of at least two operators in China in the previous fiscal year exceeded RMB 400 million.

The calculation of turnover shall take into account the actual conditions of special industries and fields such as banking, insurance, securities, and futures. Specific measures shall be formulated by the commerce department of the State Council in conjunction with relevant departments of the State Council.

The Anti-Monopoly Law Enforcement Agency of the State Council shall conduct a preliminary review of the reported concentration of business operators within thirty days from the date of receipt of the relevant documents and materials submitted by the operator, and make a decision on whether to implement further review. and notify the operator in writing. Before the Anti-Monopoly Law Enforcement Agency of the State Council makes a decision, operators shall not implement concentration. If the anti-monopoly law enforcement agency of the State Council makes a decision not to conduct further review or fails to make a decision within the time limit, operators may implement concentration.

If the anti-monopoly law enforcement agency of the State Council decides to conduct further review, it shall complete the review within 90 days from the date of decision, make a decision on whether to prohibit the concentration of business operators, and notify the business operators in writing. The reasons for a decision to prohibit the concentration of business operators must be stated. During the review period, operators shall not implement concentration.