Discuss The Influence Of Cross-border M&A Brought To Our Market Structure

Since the mid-1990s, the fifth merger and acquisition wave (M&A) swept over the main developed countries in Europe and America, as well as South Korea, Singapore and other newly industrialized countries and regions, even the developing countries. In addition to traditional industries, the field of merger and acquisition involves tertiary industry and high-tech industry such as finance, telecommunication, transportation, computer, bio-engineering, which was characterized in mega-merger and cross-border M&A.As China's accession to the WTO and further intensify the degree of opening to the outside world, also the continuous development of our market economy and the close relation with international community, cross-border M&A has become an inevitable issue in front of Chinese enterprises. With the continuous growing of cross-border M&A happened in China, the competition of market structure has been changed rapidly.Based on the concern of above issues, firstly, this paper reviewed the development of our market structure since reform and opening-up, and cross-border M&A in our country's development process. Secondly, it analyzed general relations between cross-border M&A and host country's market structure, with using Western economics and the theory of industrial organization on the market structure. Thirdly, it made a detailed elaboration from two aspects: the multinational corporation and the host country. From multinational corporation angle, with the adoption of the different motive before the mergers and acquisitions, the different pattern within the mergers and acquisitions and the different behavior strategy after the mergers and acquisitions, the influence to the market structure has also to be different. From the host country angle, both initial market structure and the foreign investment policy of the host country will have the influence to multinational corporation merger and acquisition behavior, then affects the market structure. This is the core of the paper. Finally, it discussed how to deal with the negative impact cross-border M&A brought to our market structure from two aspects: the government and the enterprise.