The Chinese MOFCOM rules that a foreign-to-foreign deal "jumped the gun" in breach of antitrust rules (Canon / Toshiba)

MOFCOM rules that foreign-to-foreign deal "jumped the gun" in breach of antitrust rules* In a decision adopted on 16 December 2016 and made public on 4 January 2017, the Chinese Ministry of Commerce (“MOFCOM“) fined Japanese company Canon for failure to file its acquisition of Toshiba Medical Systems (“Toshiba Medical“) for merger control clearance under the Anti-Monopoly Law (“AML“). This decision sends an important message to the business community, demonstrating MOFCOM’s willingness to address and enforce against breaches of the AML’s merger control rules even more actively and assertively than before. Transaction structure In March 2016, Canon agreed to buy 100% of the shares in Toshiba Medical from Toshiba (“Transaction“).