The Chinese State Administration for Market Regulation clears an acquisition in the auto parts sector subject to conditions (ZF / WABCO)

On 15 May 2020, the State Administration for Market Regulation (“SAMR”) in China conditionally approved ZF Friedrichshafen AG (“ZF”)’s acquisition of WABCO Holdings, Inc. (“WABCO”, ZF and WABCO collectively as the “Parties”) following a 180-day extended Phase 2 review. It is noteworthy that the SAMR is the only antitrust regulator which imposed remedies in relation to automatic mechanical transmission (“AMT”) controller, despite that the relevant geographic market of AMT controller is defined as global scope. This case once again reflects that the SAMR reviews impacts of a transaction to the Chinese market independently and takes into account the factors to ensure that Chinese domestic companies will have access to continuing supplies. Background On 28 March 2019, ZF entered into the