On August 1, 1957, Procter & Gamble, the nation’s leading manufacturer of soaps, detergents, and other high turn-over household products, acquired Clorox Chemical Company, the nation’s leading producer of liquid bleach. Purex Corporation, the second leading producer of liquid bleach, brought suit, challenging the acquisition as violative of the Clayton Act. At the time of the acquisition, Clorox held 48.8 percent of sales and Purex held 15.7 percent of sales. Purex says the enormous financial strength, advertising budget, and marketing skills of Procter & Gamble would make it nearly impossible for any bleach manufacturer to compete.

What factors are important in determining whether the merger is a valid one?