Protecting societal interests in corporate takeovers: A comparative analysis of the regulatory framework in the U.K., Germany and China

This thesis investigated the relevant societal interests that are affected by a takeover and how these interests are protected under the regulatory frameworks of the U.K., Germany and China. The thesis found that market failures may be caused by takeovers and affect not only the interests of corporate stakeholders but also legally recognized public interest considerations and other societal interests. It observed that public laws (competition law and FDI screening laws) in the U.K., Germany and China protect certain public interest considerations in takeovers through a “public interest intervention” mechanism or “public interest exemption” mechanism and a national security review system. Private laws (takeover law and corporate law) and the national corporate governance codes in the three jurisdictions mainly protect the interests of corporate stakeholders (primarily target shareholders) while other societal interests are largely neglected. Based on the strengths and weaknesses of the current regulatory framework, the thesis provided recommendations for future reforms in the field of takeover regulation in the U.K., Germany and China.

“Protecting societal interests in takeover regulation: Story of UK, Germany and China “