Global Players – Global Markets
- International Institutions and Global Governance series
Edited by John-ren Chen
Chapter 4: The International Competition Network as an International Merger Control Institution
4. The international competition network as an international merger control institution Oliver Budzinski INTERNATIONAL MERGERS AND COMPETITION POLICY1 The second half of the 1990s was strongly characterised by a massive wave of cross-border mergers which caused an intensive academic and political discussion.2 Although there have been other important and extensive merger waves before (see Figure 4.1) and Table 4.1,3 this one was distinctive in a number of ways: 1. 2. With its peak in the year 2000, the 1990s’ merger wave exceeded the last merger wave by approximately ﬁve times (see Figure 4.2). Different from all the historic merger waves, it consisted of a unique volume of cross-border mergers (see Figure 4.3). This is true not only in regard to the origin of the merging companies, but even more so concerning the regional distribution of the affected markets. Not only did the total value of mergers reach an all-time peak, but the average transaction volume also signiﬁcantly exceeded previous mergers. For instance, the transaction values of Vodafone Airtouch/Mannesmann (190 billion US$ in 2000) and AOL/Time Warner (166 billion US$ in 2000) more than doubled the biggest merger4 so far and exceeded the GDP of middle-sized industrial countries like Portugal (about 120 billion US$). While mergers traditionally are characterised by the acquisition of a smaller company by a bigger one, the 1990s’ merger wave consisted of a distinct increase in mergers between equally-sized companies (see Table 4.2). This megamerger wave encompasses virtually every industry and, contrary to the other...
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.