Regulatory Alerts2026-08-20 | 87577Added · Updated
Revision of Merger Price Calculation Standards Under the FSCMA
The Financial Services Commission announced that the National Assembly passed a revision bill for the Financial Investment Services and Capital Markets Act (FSCMA) on August 20, 2026, changing merger price calculation standards from a market value approach to a fair value approach. This new standard requires considering comprehensive factors including market value, net asset value, and future profit value for mergers, acquisitions, business transfers, stock swaps, and mandatory bids to dissenting shareholders. The revision also mandates that acquiring companies' boards prepare and disclose statements on merger purpose and price appropriateness, obtain third-party evaluations, and disclose special relationships in affiliated company mergers. The revised FSCMA is expected to take effect three months after promulgation.
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