Research On Foreign Mergers And Acquisitions Effects On China's Beer Industry Market Structure

With the growing scale and market share of foreign M&A in China's beer industry, it has increasingly affected industry competition and may lead to monopoly, which has aroused much attention in academic circle. In addition, research on the effects that foreign M&A exert on China's beer industry relates to optimization of the industrial organization and improvement of industrial competitiveness. To solve this problem, this paper will prove and analyze from both theoretical and empirical research.Based on the study frameworks of the Industrial Organization Theory, this paper firstly shows systematic study on development status of China's beer industry and expansion of foreign investment through descriptive analyses, and analyzes regional concentration and foreign capital's regional distribution of beer industry, and then outlines in-depth analyses on effecting mechanism of foreign M&A from four aspects: market concentration, economies of scale, product differentiation, and barriers to entry. Based on the theoretical analysis, this paper collects data sets such as market concentration (CR4and CR8), foreign M&A, number of enterprises and imports of China's beer industry from1995to2010, Using SPSS Statistics20.0to get correlation analysis and linear regression simulation model. Conclusions are drawn as follows:Foreign M&A levels up concentration rate and the barriers to entry in China's beer industry, enhances product differentiation and helps the formation of the economies of scale. To some extent, foreign M&A helps to drive the rationalization process of China's beer industry market structure. Finally, based on the empirical conclusions, this papers considers that in order to maintain the industrial safety of beer industry and minimize the negative effects of foreign M&A, the government should fully develop to regulate the legal system of foreign activities, and reasonably use foreign capital to optimize the market structure of China's beer industry, maintaining the healthy development of China's beer market.