Crossborder mergers and acquisitions and developing economies

1
Cross-border mergers and acquisitions and
developing economies

• Dr. Simon J. Evenett
• World Trade Institute
• simon.evenett_at_wti.org

2
Overview of presentation

• The relevant factual record
• What are the sources of concern, if any?
• What are the pros and cons of the available
  policy responses?
• What are the special concerns of transitional
  economies?

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The 1997-2000 wave
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The 1997-2000 wave
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Many more multi-billion dollar deals
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Mega-deals drove the latest wave
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Service sector MA dominates
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Sources of policy concern

• Costs of greater concentration
• Benefits of efficiency
• backlash

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Policy responses

• Self help ex-ante merger review

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Policy responses

• Self help
• Ex-ante merger review
• Ex-post monitoring
• Abuse of dominance
• Price regulation

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Policy responses

• Self help
• Ex-ante merger review
• Ex-post monitoring
• Abuse of dominance
• Price regulation
• Regional initiatives
• Big versus small countries

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Special concerns of transitional economies

• Shrinking the state sector
• Financial sector and bank regulation
• Financing infrastructure