Analysis On Efficiency Defence In Horizontal Merger Control

The China's anti-monopoly laww as formally promulgated into effect on August 1,2008, making the company's acquisition by a broader concern. China's market has become increasingly international, foreign-funded enterprises come into the Chinese market, at the same time more and more enterprises to go abroad is also increasing. The Chinese enterprises are in the face of major international corporations and the international market, and a severe external environment make enterprises become to acquisitions in the quest for survival and development of a necessary and inevitable way. The most direct result of horizontal mergers is the expansion of business scale, and industry concentration is larger, and the increase in market share, market forces strengthening. Then the mergers mistakenly be recognized as giving rise monopoly, harmful to society and hinder competition in the market. This argument for Horizontal Merger, is unreasonable to judge. This paper is produced on horizontal merger and study the efficiency of it to reduce people's mistakes of horizontal mergers, and to better understand the awareness of horizontal mergers and the true meaning of antitrust.This article discusses about several issues:(1) What efficiency does the horizontal mergers and acquisitions generate? (2) how to control the efficiency of horizontal mergers and acquisitions in the United States and the European Union as the representative of the national anti-monopoly law? What are the differences? What are the sources of these differences? (3) how do the efficiency of horizontal mergers and acquisitions in evidence effect in merger control and reflect the results of the horizontal merger? (4) By these cases we can feel the history of antitrust in the efficiency of the implementation of defense is to be gradually recognized. How to recognize in the market efficiency of the test result? (5) What issues are still exist that we can see from the first case of the Chinese Anti-Monopoly-Coca-Cola acquisition of Huiyuan case? What we can draw after researching in this paper on experience?The efficiency of horizontal mergers was first produced by the U.S. economist Williamson (Williamson,1968). He believes that acquisitions can be reduced through economies of scale and the cost of a single product, or an average cost. And whether a merger will be subject to control of the business which should compare the efficiency of mergers and acquisitions and anti-competitive effects of the trade-off, this is Williamson welfare tradeoff model. Jenson and Meekling (1976) proposed that a merger can reduce the agency cost. Davidson and Deneckere (1984) outlined, the merger may be a double-edged sword:conspiracy to undermine the merger may also increase corporate profits. Harvard School influenced the structure of antitrust laws in the United States in early development which is an important standard to measure, Later Chicago school also had a significant impact on antitrust laws of the United States,to relax controls for the merger. These economic studies promote the anti-monopoly law to constantly adjust and improve. But how to measure the efficiency of this are still some differences.The first chapter introduction introduces the origins of writing this article, literature review, writing ideas and so on. Chapter 2 Economic Analysis of the efficiency of horizontal mergers and acquisitions generated, there are economies of scale, synergies, reduce time and cost efficiency. These efficiencies have been gradually recognized by the government, and anti-monopoly control has started to efficiency goals.Chapter3 the European and the U.S. has a long history of anti-monopoly and largest of the two countries and anti-monopoly control. Through comparative analysis summarizes their similarities and differences between the two, there are some different. Low price may not be recognized by the EU, the European Commission that makes the bundle after bundle of products and prices are lower than the prices of individual products may make other competitors exclude. U.S. and EU merger review different as the starting point is different,.the United States as the starting point of concentration of market but dominant position in the EU is very important that the horizontal merger review as a starting point. Chapter 4 through case studies so that we more clearly recognize that the U.S. and EU Horizontal Merger control efficiency in the implementation process of the role played by the defense. Chapter V discusses the summary through the front of the anti-monopoly control, China's horizontal merger control should be the goal of efficiency, the development of horizontal merger guidelines should be clear as soon as possible on the efficiency of defense factors. Finally, I produced a guideline on the efficiency of the Chinese Horizontal Merger Guideline.Mergers and acquisitions and monopoly are not equivalent, and the need to expand the scale of the enterprise and the market is not in contradiction to remain competitive. Market concentration is high and they can maintain their competitive status, especially in the current Chinese market has opened up, companies possibility face of not only the domestic market, but a broader international market. The large foreign companies seized more and more of the market, and gradually had monopoly power at the same time, in some industries have been gradually affect our own economic order and economic security. Although our government has developed anti-monopoly law, but how to use of the antitrust laws reasonable and effective to maintain competition and promote economic development of the market It is important to note that we promote our businesses development to better and faster.