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Del Monte has a long and rich tradition in the American food processing industry. It is perhaps best knows for packaging canned fruits and vegetables.

Del Monte has a long and rich tradition in the American food processing industry. It is perhaps best knows for packaging canned fruits and vegetables. Part of its success has involved acquiring other brands of canned foods and vegetables. Suppose that Del Monte is continuing its business plan of expansion by acquisition and that the following table summarizes potential takeover target. Based only on the information given in the table, is a horizontal merger between Del Monte and one of the firms in the table likely to meet any opposition from the government? You may assume that Del Monte is currently already present in the markets for Canned tomatoes and Canned pineapple even before the merger.

It is not necessary to calculate C4 or HHI or calculate changes in C4 and HHI, but you have to explain how C4 and HHI could change as a result of the merger, based on the information given in the table. You must give an explanation.

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Profit Dansby- as % of Rothschild Lerner Willig Company Product Line Sales CA HHI Index Index Index Unilever Dove-personal care 5.2 24.1% 874 0.11 0.94 0.01 TricorBraun Food-grade cans 6.8 32.7% 1,065 0.64 0.67 0.40 Goya Canned tomatoes 7.1 86.3% 3.297 0.74 0.32 0.66 Dole Canned pineapple 8.7 94.2% 5.457 0.76 0.14 0.72

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