Mergers And Acquisitions On The Chinese Retail Industry Market Concentration Impact

M&A is no doubt a shortcut to expand rapidly for any kind of corporation. However, the success results of M&A are composite achievements of the industry development level, the market structure, the possibility of potential increase and the capability of integration. In all, M&A is a systemetical solution for entreprises.It is a quite short time for the development of retail industry in China. Though the management of local company is still in primary stage, almost every type of retail industry can be found here. Retail industry got the keen of the famous corporation worldwide and absorbed numerus investments due to China's great population bonus.It can't meet the demands of all sorts of the retail groups and investors around the world by only opening the stores gradually in the industry which is full of fiece competition. M&A becomes the first choice of the entrepreneurs and investors. There happened many typical cases in retail industry around the time when China opened its retailing market to the world. M&A is becoming more and more popular. Different kinds of the companies include of the state-owned enterprises, foreign funded corporations and the private firms are all positive in practicing merge through every possible way. Now, the structure of China's retail industry is obviously changed and not similar with the original situation at the beginning of the Reform. After several huge mergers, there formed six leading companies across the whole China region.Based on the study of the main theories in M&A across the world and the relationship between the development of retail industry and M&A, the paper gives an analysis on the specialities and circumstances of the retailing market in main coutries. It compares the contentration figures above with the numbers got from different kind of markets in China's retail industry. And the paper also provides the characters of the M&A cases in the retail market after summarising the main issues occurred in China. The article overviews the key cases of retail industry happened in the recent years worldwide, and chooses two major cases of China to analyse and gets the information that M&A plays an important role in the development of enterprises, in raising the consentration figure of the retail industry and of course in the industry restructuring.It is estimated that the M&A of retail industry of China will still go on and the acquisition volume definitely will reach a new level in future. We are confident that the retail corporations of China will form their own characters after difference kinds of acquisitions and establish their kindom to compete with international enterprises.By M&A, the consentration figure will be raised more, the scale effect will be unfolded and the resource allocation and useage in China's retailing will be more reasonable and effective.