Leverage Effect Theory In The Regulation Of Concentration

Leverage effect theory is one of the most important theories in antitrust law. helping the law enforcement agency make decisions in many cases. Since China issued Antitrust law in2008, the Anti-monopoly Bureau has experienced a lot of mergers and acquisitions (M&A), and will face more complicated M&A referring to Leverage Theory. Therefore, the established laws and legal system had obvious problems which will block the development of antitrust law.In order to build fair competitive and orderly prospecting right market, it is necessary to study further on Leverage Theory to promote business exchanges and cooperation. In the first part, this paper introduces Coke-cola/Huiyuan merger, the22assessment of Chinese Ministry of Commerce, and the Leverage Theory. Part Ⅱ introduces Leverage Theory in EU and US, and focus the analysis on ACCC assessment of Coca-Cola Amatil Limited’s proposed acquisition of Berri Limited. In the third pat, based on part Ⅱ, we analysis Coca-cola/Huiyuan merger with Leverage Theory, introduce how this theory develops in China. The last part of this paper pays attention to several problems and solutions when applies the theory to actual operations, for example, conditional approval, increasing transparency and competition assessment of law.The research innovates in the following points:First, in the aspect of subject matter, we start from cases and end with theory. There are many cases about Leverage Theory in abroad while few in China, so we need a lot of real cases to help study the theory.Secondly, in the aspect of demonstrations, we combine cases to theories, compare foreign development to domestic applications, introduce the whole process of Leverage Effect Theory and put forward some suggestions, thus making this paper more distinct and convincing.