Analysis On The Cause And Economics Impact Of Horizontal M&A Tide Of Western Developed Country

In the past few years, western developed countries have undergone a horizontal M&A tide, which had had a numerous impact on their economy and even the global economy. This period will inevitably cast a light on China's developing market economy. A cause and impact analysis of M&A tide has been carried out in this paper using some theoretical research as well as practical implication. At the very begging the origin and the momentum of this tide are explained. Then taking market structure, market efficiency and social benefit into account, analytical research on the economic impact is further given. To make the conclusion more explicit, the horizontal M&A tide of American telecom market in the 90s was a case in point. Finally, some suggestions of horizontal M&A tide which will occur in China are presented based on the above analysis.