China orders reversal of Meta’s $2 billion Manus deal
China has blocked Meta Platforms Inc.’s acquisition of Singapore-based AI-agent startup Manus, ordering the parties to unwind the deal after a foreign investment review. The deal, which Meta completed in late December and which Caixin learned was valued at around $2 billion, first drew official regulatory attention earlier this year. On Jan. 8, China’s commerce ministry spokesperson He Yadong said the ministry and other government departments would evaluate the acquisition’s compliance with laws regarding export controls, technology transfers and outbound investment. The Office of the Security Review Working Mechanism for Foreign Investment, under the National Development and Reform Commission, said on Monday that it had issued a “prohibition decision after conducting a review in accordance with relevant laws and regulations.” The move represents a typical case of extraterritorial jurisdiction, as both parties to the transaction are overseas entities, said Jason Jia, a senior counsel at Zhong Lun Law Firm. The decision serves more as a deterrent, signaling to the market that similar transactions are unlikely to receive approval going forward, he told Caixin.
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