The creation of joint ventures is also subject to merger control where the joint ventures will function as autonomous economic entities (“full-function”).

A joint venture will be considered full-function where it:

  • has the resources, such as assets, personnel, financing, to operate independently from its parent companies;
  • carries out activities that go beyond one specific function for its parent companies;
  • does not totally rely on sales to or purchases from its parent companies; and
  • can operate on a lasting basis.
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