| December 30,2014,China CSR and CNR Locomotive released restructuring announcement,the case take the way China South Locomotive merger China CNR in technically.China South Locomotive,CNR as only two large-scale manufacturing enterprises in rail transportation equipment manufacturing industry.The mergers and acquisitions caused widespread concern in social and academia,generate two diametrically opposed views:One view is that the merger is likely to create a monopoly in the Chinese rail transportation equipment manufacturing industry,undermining effective competition in the market,is not conducive to business innovation and hindering both the core technology to catch up in the field.Another point of view is that the merging not only to avoid friction,play the overall advantages of China’s high-speed rail,but also to enhance China’s overall economic strength,with the international market.Ministry of Commerce Antitrust Bureau under the relevant provisions of "anti-monopoly law" on Mergers and acquisitions of CSR and CNR matters for the review of concentration issued in April 2015,"Review of the decision notice" for the two companies merger application.But the Conunerce Department did not issue a detailed justification for adoption.On the basis of analysising the organizational structure and characteristics of CSR and CNR two companies t analysis,using qualitative and quantitative method analysis of the competitive effects of the Horizontal Merger.At the first using using PCAIDS model to analysis unilateral effects of mergers and acquisitions,but also the industry elasticity sensitivity analysis to make the results more convincing.Making a comprehensive analysis of the competitive effects of mergers and acquisitions.Second,from the efficiency defense,buyer power,the international competition in the market three aspects to analysis the efficiency which may have arise from the two companies Horizontal Merger.The results show that,Under different assumptions,the results of unilateral effects of mergers and acquisitions is different,indeed there may be some unilateral effects in the rail transport market after merger,but which are not significant.And mergers and acquisitions bring efficiency defense have some offsetting effect for unilateral effects,on the same time buyer power and impact of international competition in the market will weaken the impact of unilateral effects.In short,under the effect of offset efficiency,anti-competitive effects arising from the merger is not obvious.Considering its competitive effects will not have a significant impact on the market,therefore,the Ministry of Commerce agreed merger of the two companies is reasonable. |
