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Given none are Chinese companies, why does the acquisition need China’s approval?

I am looking at, e.g., Microsoft says China approves its plan to buy video game-maker Activision Blizzard

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  • I’m voting to close this question because it's about corporate finance, not personal finance
    – Vicky
    Commented May 25, 2023 at 8:38

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Because Microsoft does a huge amount of business in China and would like to continue operating there. If you do business in a country your business has to follow the regulations governing business in that country. Microsoft also has to get approval from the EU for the merger for the same reason.

Apart from its size, the Blizzard acquisition is somewhat more fraught in China because Blizzard previously shut down its business in China because of a dispute with its Chinese partner company, NetEase.

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    And as for why China at all cares... it's because they can. If, say, Cambodia tried to demand Microsoft obtain approval, MS might just tell them to go jump in a lake. But it's harder to do for a superpower.
    – JonathanReez
    Commented May 22, 2023 at 17:42
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    @JonathanReez not superpower but big market. If microsoft and Blizzard had no access to China they wouldn't ask. On the other side I wouldn't call the EU a superpower (yet) but they still care because of the market
    – Jimmy T.
    Commented May 23, 2023 at 16:03

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