Analysis On The Increased Effect Of Controlling Power Of M&A

The process of M&A is, in essence, the process of transfer of controlling power between, or among corporations. Such movement can promote the resources flow from the low distributed corporation to the higher distributed one.In paper, starting from the fighting for the controlling power during corporation M&A, are thoroughly analyzed the market theory of controlling power of a corporation and the relationship between the controlling power and many other structures of a corporation, such as the structure of stock ownership, the structure of financing as well as the structure of corporation governance, tentatively probed into the question about increased effect of controlling power in M&A of state-owned listed corporations. Founded on previous argument, and on the premise of admission that the stock ownership of state-owned listed corporations in our country is "different share", this paper put forward an assumption that the negotiable shares and non-negotiable shares are not par shares, and talked about, with this assumption, how to carry forward the movement of market oriented M&A between or among state-owned listed corporations so as to better the resource-distribution. At the same time, this paper also raised suggestions of the choices and formulation of policy on anti-trust in relation to corporation M&A.M&A is not merely the spontaneous movement in the process of the growth of corporation but also the inevitable choice in the process of the evolvement of market. Taking the corporation as the principal part, M&A appears to be a sort of transaction of property right of the corporation. Taking the market as the principal part, M&A appears to be a sort of improvement on the efficiency of social resource distribution. Nevertheless, all the things mentioned above should take the acquisition of controlling power of the target corporation as the prerequisite. Without such controlling power, there is no way to raise the profit of the corporation or improve the efficiency of resource distribution.As far as China is concerned, the practice of M&A requires a very long time, which is not just an economic issue (i.e. The M&A has to be correspondent to the gradual process of the structural reform in China), but a systematic project in many ways involving social ideology and political and administrative structure etc.