Research On Failing Firm Defense

Failing Firm Defense is an important substantive counterargument in the M&A Antitrust Review Defense System.It has a basic concept as follow: the company which may be purchased in an M&A is on the verge of bankruptcy,and purchasing this company will cause less negative effects to the market competition rather than dropping the company and its assets out of the market.This article starts from connotation,principle,causation,legal basis and value goal of Failing Firm Defense,focuses on analyzing legal sources,using conditions and typical cases of the U.S.and the E.U.to be able to provide legislation and law enforcement experiences for sounding and perfecting China's Failing Firm System.This Article is divided into 4 parts as following:Part 1: Overview of Failing Firm Defense.This part starts from connotation,principle,causation,legal basis and value goal of Failing Firm Defense,elaborating Failing Firm Defense for the M&A Antirust Review.Part 2: Legal Basis of Failing Firm Defense,i.e.,Rule of Reason.This part mainly introduces the Rule of Reason,including its history,connotation and value.Part 3: Failing Firm Defense in the U.S and the E.U.This part mainly introduces,analyzes and concludes related regulations,applicable conditions and typical cases about Failing Firm Defense in the U.S and the E.U.and their comparison.Part 4: Constructing Failing Firm Defense In China.This part analyzes factors which might affect the Failing Firm Defense in China,then analyzes the legislation,finally provide some advice on constructing the Failing Firm System in China.