Empirical Analysis of Mergers in Japan II: NSK’s Acquisition of Amatsuji Steel Ball Manufacturing Co.(2021.5)

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KOMATSUBARA, Takashi(Associate Professor, Department of Information in Business, Jobu University and Visiting Researcher of the Competition Policy Research Center)

Abstract
In 2006, NSK, which manufactures and sells ball bearings, acquired all shares of Amatsuji Steel Ball Manufacturing Co., which manufactures and sells steel balls that are parts of ball bearings. This acquisition is understood as a vertical merger that integrates the manufacturer and sellers of steel balls as inputs and ball bearings as outputs. This paper analyzes the effect of the vertical merger on the price of ball bearings by a difference-in-differences method. The results of the analysis show that the price of ball bearings did not rise significantly after the acquisition of shares. This can suggest that the effect of the vertical merger on the price competition in the ball bearings market was limited. In the appendix, the effect of the merger of New Oji Paper and Honshu Paper in 1996 is analyzed using a difference-in-differences method. The analysis focuses on the middle-grade printing paper, for which a remedy was taken at the time of the merger. The results of the analysis show that the price of middle-grade printing paper dropped significantly after the merger.

Abstract

　In 2006, NSK, which manufactures and sells ball bearings, acquired all shares of Amatsuji Steel Ball Manufacturing Co., which manufactures and sells steel balls that are parts of ball bearings. This acquisition is understood as a vertical merger that integrates the manufacturer and sellers of steel balls as inputs and ball bearings as outputs. This paper analyzes the effect of the vertical merger on the price of ball bearings by a difference-in-differences method. The results of the analysis show that the price of ball bearings did not rise significantly after the acquisition of shares. This can suggest that the effect of the vertical merger on the price competition in the ball bearings market was limited. In the appendix, the effect of the merger of New Oji Paper and Honshu Paper in 1996 is analyzed using a difference-in-differences method. The analysis focuses on the middle-grade printing paper, for which a remedy was taken at the time of the merger. The results of the analysis show that the price of middle-grade printing paper dropped significantly after the merger.