Controversy over the follow-up market share of the

2022-07-27
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Follow up to the acquisition of Mitsubishi Liyang: market share leads to controversy

methyl methacrylate (MMA), a rare chemical raw material name, affects many people's nerves

on April 24, the Ministry of Commerce of China announced the results of the centralized anti-monopoly application and review of the operators of Mitsubishi Liyang company (hereinafter referred to as Mitsubishi Liyang) who planned to acquire Lucite international, the world's largest MMA manufacturer (hereinafter referred to as Lucite), the world's fourth largest MMA manufacturer, Japan's all-purpose insurance premium in 2014 was about 340billion yuan. Finally, Lucite was stripped and can be calibrated The acquisition case was approved with conditions such as correcting parameters and normal experiments (using extension meter for large deformation demand) printing the results after the experiment of half of China's production capacity was completed

although it has been approved, the debate over the acquisition has not ended

on the one hand, there are still questions about the market share of Mitsubishi Liyang in China after the acquisition; On the other hand, the acquisition case has attracted the continuous attention of major foreign financial media and triggered further speculation on China's foreign investment policy

however, according to the people involved in the review of the case, the restrictive approval of Mitsubishi liyang's acquisition of Lucite by the Ministry of Commerce, the previous prohibition of Coca Cola's acquisition of Huiyuan Juice and the conditional approval of InBev's acquisition of AB beer have nothing to do with China's foreign policy, and China's attitude towards foreign-funded enterprises has not changed

reasons

according to insiders, since the end of last year, the rise in global raw material prices and the global financial crisis have resulted in Lucite's global liabilities of more than $1 billion. Chathouse, which owns 78% of Lucite's shares, has decided to sell Lucite

strictly speaking, Lucite entered China in 2003 and established a wholly foreign-owned enterprise with an annual output of 100000 tons of MMA in Shanghai in 2005

mma is a kind of organic chemical raw material, which is mainly used to produce plexiglass (polymethylmethacrylate PMMA) and other resins, plastics, coatings, adhesives, etc

according to the above insiders, Lucite China is a high-quality asset of the company, and the sales volume of the Chinese company in 2007 was 1.5 billion yuan. When Lucite's owner decided to sell the company last year, PetroChina Jilin chemical company, the largest MMA manufacturer in China, communicated with Lucite to buy its company in China, but no agreement was reached

in November, 2008, Mitsubishi Liyang announced that it planned to acquire Lucite's global assets, including Chinese factories, and then made anti-monopoly declarations to 7 countries (regions) including China and the United States in accordance with the anti-monopoly laws and regulations of various countries (regions)

at the end of last year and the beginning of this year, six other countries except China approved the acquisition. Lucite paid about $250000 in debt interest every day during this period

On January 20, 2009, the Ministry of Commerce began to file and review the application of Mitsubishi Liyang for acquiring Lucite, and notified Mitsubishi Liyang

in the review process, the Ministry of Commerce believed that in view of the high market share of Mitsubishi Liyang and Lucite in MMA, the combined market share reached 64%, and the market dominance acquired by the acquirer Mitsubishi Liyang in MMA market due to M & A had the effect of excluding and restricting competition, which would have an adverse impact on the effective competition in China's MMA market and its downstream markets

Ren Yong, the attorney in charge of the business concentration declaration to the Ministry of Commerce of China in the case of Mitsubishi liyang's acquisition of Lucite, said that a high market share does not necessarily mean a dominant market position. Mitsubishi Liyang and Lucite do not believe that their acquisition will have an impact on restricting competition in China's MMA market, but admit that such suspicion may exist

Ren Yong said that Mitsubishi Liyang and Lucite had communicated with the Ministry of Commerce on the role of market share for many times, but failed to convince the Ministry of Commerce

results

in the review process of the Ministry of Commerce, relevant domestic enterprises and industry associations played an important role in lobbying

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