Consider a market that has three firms with the following market shares: Firm A = 35 percent
Question:
Firm A = 35 percent
Firm B = 41 percent
Firm C = 24 percent
Suppose firm A wants to acquire firm C so that the post-acquisition market would exhibit the following shares:
A + C = 76 percent
B = 24 percent
Calculate the pre- and postmerger HHI, and the change in the HHI resulting from the merger. According to Department of Justice guidelines, is this merger likely to be challenged?
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The premerger HHI for the market is HHI 35 2 41 2 24 ...View the full answer
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Related Book For
Finance Applications and Theory
ISBN: 978-0077861681
3rd edition
Authors: Marcia Cornett, Troy Adair
Question Posted:
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