THE IMPACT OF MERGERS AND ACQUISITIONS ON COMPETITION AND MARKET CONCENTRATION IN EMERGING AFRICAN MARKETS

Authors: Kiring’a Simiyu Edward, PhD, Mathina Wanjiru Ruth, PhD, & Odongo Kodongo, PhD

ABSTRACT

Mergers and acquisitions (M&A) have become a dominant feature of corporate restructuring across emerging markets, including Africa. While M&A activity is often justified on efficiency and growth grounds, concerns persist regarding its implications for competition, market concentration, and consumer welfare. This study investigates the impact of M&A on competitive dynamics and market structure in emerging African economies. Drawing on theoretical perspectives from industrial organization and corporate finance, and supported by recent empirical literature, the study examines four key dimensions: market concentration, firm competitive behavior, regulatory effectiveness, and consumer welfare. The findings suggest that although M&A can enhance firm efficiency and innovation, weak regulatory enforcement in many African economies increases the risk of excessive market power, reduced competition, and adverse consumer outcomes.

Keywords: Mergers and acquisitions, competition, market concentration, regulation, consumer welfare, Africa.

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