ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Mergers and Acquisitions by MNEs

A competition policy is more, not less, important with liberalised FDI inflows. This is because of growing mergers and acquisitions by multination enterprises concentrate market power. Unlike greenfield investments, M and As may not add to the stock of capital in the country, nor bring in new knowledge or lead to knowledge spillover. The hope-for benefits of FDI inflows will accrue only if there is an appropriate competition policy.

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