Russian merger control: in favor of foreign companies?

PurposeThe paper aims to reveal the attitude of the Russian competition authorities towards cross-border mergers involving foreign buyers. The study addresses the following question: Is the probability of Russian competition authorities' intervention significantly different when a foreign buyer takes part in the merger? This is the key test to reveal whether competition authorities gravitate towards “economic nationalism” or “promotion of foreign investments”.Design/methodology/approachThe discrete choice model is applied to the dataset of 7,607 merger cases investigated by the Russian competition authorities between 2012 and 2017. The probability of competition authorities' intervention, such as merger correction by using remedies or deal rejection, is used as a measure of special attention.FindingsThe study finds out favoritism patterns of the regulator with regard to foreign companies. In particular, the deals involving a foreign buyer had less chance of intervention, i.e. imposition of remedies, from national competition authorities. The sanctions period does not moderate the probability of approval of a cross-border merger with foreign buyers by the Russian competition authorities.Originality/valueThe paper contributes to merger control literature by addressing the political economy issues. It discovers that, besides regulation by the law, there are hidden motives, such as protectionism or favoritism of foreign companies, which could drive the regulator's decision. Therefore, the studies of cross-border mergers provide an opportunity to investigate the political issues of merger control through the identification of a special attitude to foreign companies and analysis of regularities that might explain such a policy.

Examining Tacit Knowledge Acquisition and Opportunity Recognition in International Buyer-Supplier Collaborations

The purpose of this chapter is to provide initial understanding of how tacit knowledge and potential business opportunities can be generated in international buyer-supplier collaboration. Working jointly with a foreign buyer allows Malaysian manufacturing suppliers to upgrade their capabilities and competitive advantage as the buyer will often provide assistance in various forms ranging from setting up quality standard for product and delivery, to providing technical support and training, to assisting with innovation and finally to helping the supplier detect future business opportunities through the buyer's networks. This can only be achieved when the suppliers are open to such opportunities to acquire tacit knowledge since absorbing newly transferred knowledge and skills evidently requires several learning processes and relationship development. The impact of accumulating the knowledge, expertise and experience gained from the relationship with a foreign buyer will subsequently lead to the acquisition of tacit knowledge and recognition of new opportunities by the Malaysian manufacturing suppliers.

Examining Tacit Knowledge Acquisition and Opportunity Recognition in International Buyer-Supplier Collaborations

The purpose of this chapter is to provide initial understanding of how tacit knowledge and potential business opportunities can be generated in international buyer-supplier collaboration. Working jointly with a foreign buyer allows Malaysian manufacturing suppliers to upgrade their capabilities and competitive advantage as the buyer will often provide assistance in various forms ranging from setting up quality standard for product and delivery, to providing technical support and training, to assisting with innovation and finally to helping the supplier detect future business opportunities through the buyer's networks. This can only be achieved when the suppliers are open to such opportunities to acquire tacit knowledge since absorbing newly transferred knowledge and skills evidently requires several learning processes and relationship development. The impact of accumulating the knowledge, expertise and experience gained from the relationship with a foreign buyer will subsequently lead to the acquisition of tacit knowledge and recognition of new opportunities by the Malaysian manufacturing suppliers.

Melville Corporate Finance, Inc.

Melville Corporate Finance, Inc. (Melville) is approached by a Canadian bottling equipment manufacturer to provide $3.4 million of capital investment foreign buyer financing to their customer, a rapidly expanding Chinese bottling company. The Chinese company needs to purchase the equipment and increase its production capacity to secure long-term, multi-million dollar contracts with Pepsi and Coca-Cola in Thailand. With very short deadlines, Melville's CEO works with Export Development Canada (EDC) to assess the risks involved in offering full financing and insurance for the Chinese bottler, and must keep in mind that the Canadian manufacturer will lose the sale if the financing does not get approved. The deal presents several challenges to Melville; an unknown foreign buyer with no proven credit history, language and communication barriers, geographic distance, incongruent accounting standards, etc. As the risk variables emerge, both Melville and EDC must decide if the stakes are too high to support the transaction.

FINANCING: AN IMPEDIMENT TO EXPORTING BY SMALL AND MEDIUM FIRMS

The purpose of this study, based on a survey of 354 Florida companies, was to identify and assess the importance of factors that limit exports, with particular focus on the different types of export financing that were the most difficult to obtain. Statistical analysis was used to determine the significance of responses given by different sized firms. Four of the top five factors that limited the ability to export were related either to the unavailability of export financing or the lack of available information on export opportunities. Foreign buyer credit and various unsecured loans were the most difficult to obtain. Public and private policymakers should reevaluate their export promotion programs and make the changes necessary to eliminate the various obstacles to exporting.