Essay: Regulations on mergers in China

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Essay: Regulations on mergers in China

Identify one current case it is examining or regulations it is enforcing

Currently, China is enforcing merger control rules after it was established that mergers are increasingly being formed in the country and controlling a large part of the market. There has been a number of pending cases of merger requests that were not cleared until in 2011.

In order to close these cases and make sound decisions, protecting the interests of the customers, it was realized that there was need for merger controls. For instance, considering the merger between Uralkali/Silvinit, it was realized that such a merger will the second largest exporter and producer controlling around 1/3 of the market (Polk, 2012). If left uncontrolled, the customers will suffer from escalated prices and low quality products.

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