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.