Question
Large Aluminum Corp. (LAC) has notified the Federal Trade Commission (FTC) and the Department of Justice (DOJ) that it plans to merge with Medium Aluminum
Large Aluminum Corp. ("LAC") has notified the Federal Trade Commission ("FTC") and the Department of Justice ("DOJ") that it plans to merge with Medium Aluminum Co. ("MAC") to combine their businesses both of which supply refined aluminum to various manufacturers.Currently the number of firms producing refined aluminum is relatively low and (as you would expect) the market share of these firms is relatively high.If the LAC/MAC merger is consummated five firms will, on average, control about 15% each of the market and the new LAC/MAC firm would control about 20% of the market.
What will be the likely response of the FTC and the DOJ to the proposed merger?
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