Pursuant to Article 10, Paragraph 1 of Taiwan’s Fair Trade Act, a concentration refers to a situation which an enterprise merges with another enterprise, holds or acquires shares or capital contributions in another enterprise to the extent that such shares or capital contributions constitute one-third or more of the total voting shares or total capital of that enterprise; acquires or leases all or a major part of the business operations or assets of another enterprise; regularly conducts joint operations with another enterprise; operates on behalf of another enterprise; or directly or indirectly controls the business operations or personnel appointments of another enterprise. Based on the relationship between the participating enterprises, business combinations can be classified into “horizontal combinations” involving competition within the same industry, “vertical combinations” involving upstream or downstream relationships in the supply chain, and “diversification combinations” that do not fall into either of the aforementioned categories.

The Fair Trade Commission recently decided not to prohibit the merger between E. Sun Financial Holding and Mercuries Life Insurance[1] .  In this case, E. Sun Financial Holding proposed to acquire all issued shares of Mercuries Life Insurance through a share swap. This constituted a merger under Article 10, Paragraph 1, Subparagraph 2 of the Fair Trade Act, and was duly reported to the Fair Trade Commission in accordance with the law. Since E.Sun Financial Holding would gain control over insurance products and sales channels and enter the life insurance industry following the merger, the Fair Trade Commission determined that this case involves both vertical and diversification merger characteristics. However, since the premium and commission income of the two businesses do not provide an incentive for vertical foreclosure, and given that Taiwan’s insurance market is fragmented with diverse distribution channels, there is no risk of excluding competition. Furthermore, considering factors such as regulatory controls and cross-industry plans, the Commission determined that the merger would not significantly alter the competitive landscape of the market. Pursuant to Article 13, Paragraph 1 of the Fair Trade Act, the Fair Trade Commission concluded that the merger would not result in significant adverse effects on competition and resolved not to prohibit the merger.

This decision demonstrates that the integration of banking channels with life insurance products can provide more comprehensive financial services. Provided that the competent authorities ensure that market competition mechanisms remain intact, such resource integration will not only strengthen the international competitiveness of Taiwan’s financial sector but also help achieve a win-win outcome that safeguards policyholders’ rights and promotes industrial upgrading.

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[1] Fair Trade Commission Press Release, April 8,2026  https://www.ftc.gov.tw/internet/main/doc/docDetail.aspx?uid=126&docid=18402

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