Merger Law boosts consolidation prospects for Taiwanese firms but problems remain

The race to acquire size following the island''s recent entry to WTO, was given a boost last week by the passing of the new Company Merger & Acquisition Law in the Legislative Yuan. Still, any change could be slow.

Under the new Company M&A Law, which still needs ratification by the president in two weeks, companies will be able to use a compulsory share exchange during a transaction. Previously the buyer had to negotiate with each shareholder of the company.

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