Horizontal mergers and acquisitions of corporations: An application on Turkey

The purpose of this thesis is to come to conclusions about the issue that horizontal mergers experienced in Turkey between 2004-2006, whether create market power or not, and the direction of the merger-induced change in consumer surplus, determining the effect of horizontal mergers on product price indirectly parallel to the change in the market structure generated by horizontal mergers.Under the predictions of the traditional and efficiency increase approaches, constituting a focal point on the evaluation of horizontal mergers, market power hypothesis has been tested using capital market data of non-merging rival firms and idustrial concentration levels. Significant empirical findings, signing that horizontal mergers included in the study create monopoly power, have been obtainedAdditionally, under certain assumptions i have concluded that there could be a negative change in the consumer surplus. Since the amount of the decrease in the consumer surplus is not known, the concern of the net wealth effect of horizontal mergers has not been evaluated.