The Research On Foreign Investors' Merger And Acquisition Of Chinese Power Industry

Power industry plays an important role in national economy. Absorbing foreign funds is a long-term policy to accelerate power industry development. Since the reform of power industry system, cross-border M&As in power industry are increasing rapidly, M&A has been an important way entering china electricity market. Because of having no cross-border M&A law about power industry and M&A have a important effect on power industry, it is urgent to analyse the effect of M&A on power industry and establish a reasonable government regulation system.Firstly, literature of electricity M&A both home and abroad is reviewed, then the theory of motives of M&A to analyze the motives both the merger enterprise and the mergered enterprise is applied, as a result , why M&A can become a important way to absorb foreign investment is explained clearly.Secondly, the positive and negative effect on M&A between foreign and Chinese electricity enterprise is analyzed, then M&As about thermal electricity market are stressed, with the comparison of concentration ratio before and after M&A and performance of the representative enterprise before and after M&A , it can be concluded that electricity market has not come into being monopoly by M&A and the performance of most of the enterprises has improved. Finally, the possibility and the positive and negative effect of M&A between foreign and Chinese waterpower electricity enterprise , nuclear power plant and renewable electricity enterprise is forecasted, and it can be concluded that it is more likely that foreign investor merger waterpower electricity enterprise , nuclear power plant.Thirdly, with reference on the procedure, measure and code of United States and Singapore, the regulation system about M&A in electricity market is designed, moreover, the construction of law, property right and market environments is emphasized .Finally, the power industry guidelines catalogue is compiled and helpful regulation measures whether cross-border M&A in electricity market should be encouraged or limited under different power structure are put forward.