On The Assessment Of The Efficiency In Dealing With A Business Combination

Efficiency system is one of the important systems of merger assessment in mostjurisdictions around the world. The author's attention was drawn by the appearance of an"efficiency part" in the latest revised EU Merger Regulation. As a result of the globalization ofeconomy, more and more transnational enterprises dealing in transnational trade have beenestablished. Another tremendous trend is that the non-transnational enterprises will also try toglobalize their businesses to obtain permanent competitiveness. More and more mergers arehappening under such kind of situation, thus the convergence and harmonization among themajor competition authorities on basic competition issues such as efficiency will providegreater degree of certainty as to transnational economic behavior. But at present, there isneither a specialized merger guideline nor a certain law stipulating the efficiency system ofmerger assessment in China, and this is going against the protection of the good competitionsurrounding as well as the development of the Chinese legal system in order to follow the stepof other jurisdictions. In this paper, the author introduces and analyzes the representativeexamples of legislations and practices of the important jurisdictions such as the US, EU, UK,Canada and Australia and the less important jurisdictions such as New Zealand, Romania,Ireland, Norway, Mexico, Brazil, Finland and Japan as to efficiency issues using certainknowledge of economics and law. Also, basing on such introductions and analyses, the authorbrings forward some advice on disposal of efficiency issues in merger assessment in Chinaaccording to the economic situation and competition surrounding faced by the Chineseenterprises.