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A merger is being negotiated between two firms. The acquirer earns 55 percent of its revenues from chemicals and 45 percent from retail drugs. The
A merger is being negotiated between two firms. The acquirer earns 55 percent of its revenues from chemicals and 45 percent from retail drugs. The target earns 40 percent of revenues from chemicals 35 percent from retail drugs, and 25 percent from cosmetics. Combined, the merged company would earn 40 percent of revenues from chemicals, 35 percent from retail drugs, and 105 percent from cosmetics. This merger results in corporate focus as the Herfindahl Index (HI) an increase in; increases from .345 to .505 an increase in; increases from .345 to .42 an increase in; increases from .032 to .42 a decrease in; declines from .505 to .345 a decrease in; declines from .505 to .42
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