China: MIIT will help break down barriers in automotive M&A

Shanghai September 21 (Gasgoo.com) The Ministry of Industry and Information Technology (MIIT), one of China's five "super ministries" approved by the National People's Congress (NPC), said yesterday it will help break down barriers in M&A activity in the automotive industry, bitauto.com reported Wednesday.

MIIT will create more favorable conditions, through developing specific policies and measures, balancing market segmentation and interests among local governments and departments, breaking regional blockades, providing more access to the private capital markets, etc., to encourage auto enterprises' mergers and acquisitions both at home and abroad.

Deputy Director of MIIT Industrial Policy Division Xin Renzhou suggested that governments of the two cities, where two potential partners are home to, can sign agreements related to profit payments and tax turnover, economic growth and industrial value added, along with terms of mobilizing the initiative of both auto enterprises.

As for employment problem arising after the merger or reorganization, Xin said the central government will grant to assist laid-off automotive workers in finding better jobs, or transferring to other jobs, or providing other unemployment benefits.