The Research On Unilateral Effect Of The Merger Of CNR And CSR

With the continuous development of the urbanization process, the rail transit equipment becomes essential components in the construction of urban traffic facilities. The two leaders of the world’s rail transit equipment--China southern railway group co., LTD. (hereinafter referred to as CSR or CSR and CNR group co., LTD. (hereinafter referred to as CNR or north) a merger, the merger of the south and north truck gradually caused scholars’attention in unilateral effect. On the one hand, it’s good for regulators or scholars to analyze the effect of unilateral in the perspective of protecting market competition; on the other hand, the unilateral effects may also affect the welfare of the whole society and the future development of rail transportation equipment industry.This thesis analyze the merger and acquisition in the perspective of competition policy, the main consideration of the question is if the merger of CNR and CSR would make a great influence on the market and make a unilateral effect, rather than the rationality of the merger. In order to solve this problem, this paper mainly applies the Cournot model in the analysis of the unilateral effect. And I relaxed the assumptions of the Cournot model such as the relaxation of market access conditions, the introduction of efficiency improvement. It is concluded that the south, the merger of CNR and CSR would make strong unilateral effects in high speed train market and electric vehicle market, and formulate relevant relief measures to keep high speed train and electric market independence.This article is divided into seven chapters:the first chapter mainly introduces unilateral effect problem of the civil car merger, the research significance, research ideas, the innovation and insufficiency. The second chapter mainly introduces the literature review of unilateral effect. Through the study of past literature, I concluded the three theory of single-side effect:the number of competitive theory, the theory of price competition and auction theory, from the amount of the market equilibrium quantity, price changes and the bidding model of horizontal mergers and acquisitions of unilateral effect were studied. The third chapter mainly introduces the historical evolution of China’s rail transit market, relevant market definition and market concentration. The relevant product markets have been found to be the following:High speed trains; Self-propelled electrical multiple units ("EMUs") and diesel multiple units,("DMUs") for intercity transport (hereinafter also referred to as "intercity trains "or "mainline trains"); EMUs and DMUs for regional transport (hereinafter also referred to as "regional trains");Passenger coaches; Trams and light rail vehicles (the latter also referred to as "LRVs"); Underground vehicles; Heavy maintenance services; Light maintenance services; Refurbishment of rail vehicles. The relevant geographic market is global market. The fourth chapter, I mainly use the Cournot model and relax assumption of Cournot model to study unilateral effect. Finally I concluded that the merger of CNR and CSR have a strong unilateral effect in a certain segment of the market, a low effect in the other segments of unilateral effect. The fifth chapter is the link of defense efficiency, mainly analyze the financial synergy, management synergy and transformation of efficiency, the merger of CNR and CSR will generate cost savings and transfer the cost savings to the purchaser. Finally I concluded that the merger will produce certain cost savings, and it would transfer the cost savings to the buyer by bidding, with increasing social welfare. Sixth chapter mainly studies the remedies of the merger of CNR and CSR.The merger of CNR and CSR will have unilateral effects in rail transit market, but the cost savings cannot be fully transferred to the purchaser. Although the social welfare increases, unilateral effect still exists, so structural and behavioral remedies are needed to further reduce the unilateral effect. The seventh chapter is subsequent progress and reflection chapter of the merger of CNR and CSR.To think further, the writer should give the object of competition policy a top priority, industrial policy should be formulated in competition policy constraints. Considering the particularity of south and north car merger, this article indicates that we should remove administration of state-owned enterprises, avoid vicious competition between enterprises, so as to enhance the vitality of the market.