Impact Of Cross-Border Merger On Industry Security

Under the circumstances of economic globalization, cross-border mergers have replaced the "greenfield" FDI, and become the main form of investments. Since 2003, the cases of foreign-funded enterprises merger domestic-funded Enterprises have significantly increased, and from the general commercial acquisitions to the strategy M&A with the concentration on the leading enterprises. It can be seen the obvious tendency of industry monopoly. To protect the industry securities, we need to clear the impacts of cross-border merger on industry securities. This paper does an initiative research on the influences of cross-border mergers to industry securities.This paper seeks to establish the assessment system about the impacts on cross-border mergers to industry securities. In order to draw conclusions, it compared the state which before the cross-border mergers to the state which after the cross-border mergers. Firstly, it discusses the theoretical system of industrial securities, and then recalling the Chinese and English literatures on industry securities. On the basis of that, it constructs the assessment system about the impacts on cross-border mergers to industry securities. Secondly, it takes the Equipment Manufacturing Industry, which not only the most cross-border mergers occurred in, but also the strategic industry of our country, for example. And then evaluates the industry by the assessment system, summarizes the results based on the evaluation of the impacts on cross-border merger to industry security in equipment manufacturing industry, and proves the feasibility of the evaluation system. In the fourth part of the paper, it sums up and analysis all the cases which occurred in recent years, and finally gives some suggestions about supervision of cross-border merger.