M&As by Business Groups and Market Competition: A Study of Tata Steel

This article examines the involvement of business groups in consolidation activity. An important component of the Monopolies and Restrictive Trade Practices Act was “the concentration of economic power in the hands of a few” which has been de-emphasized as per the amendment made in 1991. The new Competition Act mainly deals with the case-by-case analysis of market competition rather than ownership concentration. The competition regulation in its current form is mainly focusing on the concept of “economic efficiency” and not addressing the “social fairness” concept. The involvement of business groups in consolidation activities results in multiplier effects as they are already part of a diversified and well-structured umbrella of business with horizontal and vertical linkages. This article observes the active involvement of big business groups in mergers and acquisitions (M&As) activity across various product lines. Further, many such M&As are leading to capacity expansion not only in various overlapping products (i.e., horizontal linkages) but also in the vertical line of business, in which the affiliate firms of the group are engaged. This may be beneficial to the group as a whole since the cost of intermediary inputs supplied to various affiliate firms can be reduced. The study points to consider the “ownership and group effect” and the resulting synergy creation more carefully while assessing competition.

Three-dimensional geometry and growth of a basement-involved fault network developed during multiphase extension, Enderby Terrace, North West Shelf of Australia

<div>Basement fault reactivation, and the growth, interaction, and linkage with new fault segments are fundamentally three-dimensional and critical for understanding the evolution of fault network development in sedimentary basins. This paper analyses the evolution of a complex, basement-involved extensional fault network on the Enderby Terrace on the eastern margin of the Dampier sub-basin, NW Shelf of Australia. A high-resolution, depth-converted, 3D seismic reflection data volume is used to show that multiphase, oblique extensional reactivation of basement-involved faults controlled the development of the fault network in the overlying strata. Oblique reactivation of the pre-existing faults initially led to the formation of overlying, en échelon Late Triassic – Middle Jurassic fault segments that, as WNW–directed rifting progressed on the margin, linked by breaching of relay ramp to form two intersecting fault systems (F1 and F2-F4). Further reactivation in the Latest Jurassic – Early Cretaceous (NNW–SSE extension) produced an additional set of en échelon fault arrays in the cover strata. The final fault network consists of main or principal faults and subordinate or splay faults, together with branch lines that link the various components. Our study shows that breaching of relay ramps and/or vertical linkages produces vertical and horizontal branch lines giving complex final fault geometries. We find that repeated activity of the basement-involved faults tends to form continuous and planar fault architectures that favor displacement transfer between the main constituent segments along strike and with depth.</div>

Three-dimensional geometry and growth of a basement-involved fault network developed during multiphase extension, Enderby Terrace, North West Shelf of Australia

Basement fault reactivation, and the growth, interaction, and linkage with new fault segments are fundamentally three-dimensional and critical for understanding the evolution of fault network development in sedimentary basins. This paper analyzes the evolution of a complex, basement-involved extensional fault network on the Enderby Terrace on the eastern margin of the Dampier sub-basin, North West Shelf of Australia. A high-resolution, depth-converted, 3-D seismic reflection data volume is used to show that multiphase, oblique extensional reactivation of basement-involved faults controlled the development of the fault network in the overlying strata. Reactivation of the pre-existing faults initially led to the formation of overlying, en échelon Late Triassic−Middle Jurassic fault segments that, as WNW-directed rifting progressed on the margin, linked by breaching of relay zones to form two intersecting fault systems (F1 and F2−F4). Further reactivation in the latest Jurassic−Early Cretaceous (NNW-SSE extension) produced an additional set of en échelon fault arrays in the cover strata. The final fault network consists of main or principal faults and subordinate or splay faults, together with branch lines that link the various components. Our study shows that breaching of relay ramps and/or vertical linkages produces vertical and horizontal branch lines giving complex final fault geometries. We find that repeated activity of the basement-involved faults tends to form continuous and planar fault architectures that favor displacement transfer between the main constituent segments along strike and with depth.

Special Tools for the Development of Regions of Russia as a Resource of Interregional Integration

The diversity of regional situations in Russia requires a differentiated approach to building regional policies for different types of regions. Under this approach, a number of instruments have been developed to promote regional development, however they are based on the separation of regions and the strengthening of their vertical linkages. At the same time, the resource of synergistic development through interregional interaction remains virtually unused. In this regard, the purpose of the article was to inventory the existing special regimes of regional development (special economic zones, clusters, regions of a special type, territories of advanced development and others), identify legislative opportunities for implementing interregional cooperation within their framework, and analyze actual results of such instruments in Russia. Based on the analysis of the legislative framework and the practice of using the special instruments under consideration, a range of measures has been formulated to accelerate their effectiveness in the methodological and institutional sphere. A range of mechanisms that will allow the inclusion of the criterion of interregional cooperation in the structure of relevant instruments is proposed. At the same time, the fact of differentiation of possible additional (involving interregional ties) mechanisms depending on the type of region and the purpose of the implemented special development formats is taken into account.

Party Organizational Linkage

The literature argues that vertically integrated parties are important for generating or encouraging stability in multi-level systems. This chapter differentiates between party organizational linkages at the level of resources and services, cooperation, and attitudinal dimensions. Drawing on data from a survey of over 250 subnational party organizations in seven multi-level systems, this chapter shows that the institutional design of a federation does not necessarily predict the way in which parties share resources and services through vertical linkages, but it does help us predict other important aspects of multi-level organization. This includes the degree of shared values and the ideological distance between subnational and federal parties.

The deterioration of weakly vertical linkages in tra catfish industry in An Giang Province, Vietnam

This study analyzes the vertical linkage effectiveness between fish farmers and processing companies on the mutual beneficial relationship, knowledge transfer, quality standards, embedded services, and payment before the United State (US) Department of Commerce has decided to impose new rates of antidumping taxes on tra (Pangasius) fish fillets imported from Vietnam. After conducting the first survey of 70 fish farmers and five in-depth interviews with directors of processing enterprises, representatives of provincial authority, and experts in the field during March and April of 2012 in An Giang province, Vietnam, we found that the mutual beneficial relationship was the most influent factor to vertical linkage effectiveness. However, after new rates of antidumping duties were imposed, we conducted the second survey of 17 in-depth interviews with 12 fish farmers, four local officers and one expert during April and June of 2013 in An Giang province, and recognized that almost all vertical linkages with processing companies to export to the US market have been deteriorated and dispersed.

Spatial selectivity and intercity cooperation between Guangdong and Hong Kong

City-regionalism plays an increasingly important role in China’s economic development. This paper analyses new forms of institutional arrangements that promote city-regional governance in the case of Hong Kong and Guangdong. Focusing on implementing the Closer Economic Partnership Arrangement (CEPA), we examine two research questions: Why are Guangdong and cities in the PRD strategically selected to implement CEPA and embed Hong Kong-based circulatory capital? How do governments at different scales build coordinated relationships to implement CEPA? Building upon the literature on state rescaling, we argue that governments have engaged in a scalar division of administration – a form of institutional infrastructure that aims to design and implement state strategies of urban and regional development. Within this division, the national government plays a role in steering and decision-making, Guangdong provincial government in coordination and facilitation, and urban governments in Shenzhen, Guangzhou, and Zhuhai in actual implementation. CEPA implementation is built upon vertical linkages between governments at different levels in the Mainland and HKSAR government, and horizontal linkages between three free trade subzones (Qianhai, Nansha, and Hengqin) and Hong Kong-based firms and entrepreneurs.