Issues and Considerations on Cross-Border M&A and the IRR of Strategic Trade Management Act Discussed at ALB In-House Legal Summit

Quisumbing Torres joined the discussion on the latest legal developments under a new administration in the Asian Legal Business In-House Legal Summit held on 27 April. Leading the discussion on Cross-Border M&A and Strategic Trade Management Act were Quisumbing Torres partners Maria Christina Macasaet-Acaban and Ronald Bernas, respectively, who shared insights and experiences on cross-border transactions and on export/import controls.

The Asian Legal Business In-House Legal Summit is a yearly gathering of legal professionals and business leaders, which aims to keep industry experts up to date with the latest regulatory developments not only in the Philippines but also within the region. This year, the summit saw a gathering of in-house legal counsels and business professionals who sought to share knowledge and discuss issues affecting them under the new administration.

In her talk, Macasaet-Acaban delved into the issues to consider when managing M&A transactions and shared tips with the audience on how to make successful transactions.

She shared some "war stories" to stress why it is "important to understand the counterparties." She also talked about how "careful and thorough due diligence," a good understanding of the legal and regulatory framework and practices in the target's jurisdiction, and taking full advantage of the transaction structure and transaction documents, are essential to managing risks in M&A transactions.

Bernas, on the other hand, provided a background and overview of the Strategic Trade Management Act during the summit. He discussed the scope and coverage of the law, its penalties, the draft implementing rules and regulations, as well as the issues and challenges faced by businesses. He observed that only a few countries such as China regulate re-exports and reassignments because there are practical difficulties in monitoring these activities. Bernas also opined that the Philippine government should take note of the challenges/issues raised by the various industry groups in finalizing the implementing rules and regulations in order to facilitate the trade of strategic goods.

At the summit, Bernas also shared tips and actions that companies should consider in order for their business to stay ahead.

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