Sunday, 10 May 2009

Foreign companies treated as locals in merger, acquisitions

Foreign companies would be given the same treatment as local companies when registering pre-notification of merger or acquisition plans with the Commission for the Supervision of Business Competition, an official said Thursday, The Jakarta Post reported.
“We have a lot of foreign companies with representative offices in Indonesia, and just like local companies, they will have to comply with the regulation we have put down in the guideline,” director of communication for the commission, A. Junaidi, told a press conference.
He added that the pre-notification of merger and/or acquisition to the commission is voluntary for companies but incentives are provided for those who chose to do so.
“The companies which pre-notify the commission will not have their merger or acquisition nullified by the law should they do any illegal conduct after the merger. For instance, if after a merger a company is monopolizing the market, we will not demand a nullification of the merger. Instead, we will press charges under the monopoly law,” he said.

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