Beijing, January 22, 2026 — China’s State Administration for Market Regulation (SAMR) has blocked a proposed joint venture involving multiple bottled liquefied petroleum gas (LPG) suppliers in Foshan, marking the first time the authority has prohibited a concentration in the public utilities sector since China’s Anti-Monopoly Law took effect.
SAMR said it prohibited the transaction after concluding it would harm competition in the bottled LPG market in Foshan’s Nanhai district, potentially enabling the combined entity to raise prices and increase burdens on consumers.
Transaction and Voluntary Filing
The case concerns a plan by six companies operating in the bottled LPG business in Nanhai district, Foshan, Guangdong province. In October 2024, the parties signed an agreement to establish and jointly control a new joint venture that would invest in, build, and operate a bottled LPG storage and distribution facility.
Although the transaction did not meet China’s mandatory merger notification thresholds, the parties submitted the deal to SAMR on a voluntary basis.
Competition Concerns
SAMR said it consulted relevant government departments and industry associations multiple times during its review and engaged an independent third-party institution to conduct an economic analysis.
Following its assessment, SAMR concluded the joint venture would obtain a dominant market position in the bottled LPG market in the Nanhai district. The authority also found that the structure would make it easier for the merged entity to coordinate with other market participants, potentially facilitating direct or indirect price increases and harming fair market competition and consumer interests.
Enforcement Outcome
Based on the Anti-Monopoly Law and related rules, SAMR prohibited the transaction, stating the decision would help safeguard market order in bottled LPG supply and prevent post-merger price increases.
SAMR described the decision as a significant enforcement step in the utilities space and a move aimed at protecting consumers from increased costs.
Source: https://www.samr.gov.cn/xw/sj/art/2026/art_7dec22c86fce4813b705c156a961f9d0.html
