On October 10, the Financial Supervisory Commission announced new rules for financial holding company mergers, requiring that the initial investment must meet a 25% threshold and be made entirely in cash. Director General Tong Cheng-Chang emphasized that the Commission supports friendly mergers, stating that it will not support hostile takeovers, especially when major shareholders are not in agreement.

Tong pointed out that financial institutions must ensure stable management and emphasized that future mergers should be based on mutual agreement. He characterized the Commission as a 'guardian of the forest,' indicating a desire for a market that is vibrant and flourishing like a forest—not a jungle or the African savanna—to ensure stability and healthy development of the market.

According to the revised draft, an investor wishing to invest in financial holding companies, banks, insurance, or securities must reach the 25% cash threshold and provide feasibility evidence. Additionally, a series of new regulations and requirements must be adhered to in order to ensure the transparency and compliance of the merger.

The revised draft will enter a 60-day notice period to gather opinions from various sectors and is expected to be officially implemented in the third quarter.