Computing the horizontal merger guidelines

Assignment Help Accounting Basics

Reference no: EM13967478

Horizontal Merger Guidelines

The following table shows premerger market share data for four hypothetical markets. Assume that the Department of Justice has received a merger proposal from the third-largest and the fifth-largest competitors in each market. Attorneys for each firm have petitioned the government for advice as to whether or not their merger proposal would or would not be acceptable under the horizontal merger guidelines prom- ulgated by the FTC and DOJ.

Premerger Firm Market Share Data

Competitor Rank	Market A	Market B	Market C	Market D
1	40%	25%	10%	50%
2	30%	25%	10%	25%
3	15%	10%	8%	10%
4	10%	10%	8%	10%
5	5%	6%	8%	2%
6		5%	8%	2%
7		5%	8%	1%
8		5%	8%
9		5%	8%
10		4%	8%
11			8%
12			8%
Totals	100%	100%	100%	100%

A. Calculate the premerger HHI measures for each market and the change in the HHI assum- ing each proposed merger were approved.

B. In each market, indicate whether or not the proposed merger is apt to be approved accord- ing to the horizontal merger guidelines. Why or why not?

Reference no: EM13967478

Questions Cloud

Find out incidence of regulation costs : The Smokey Mountain Coal Company sells coal to electric utilities in the southeast. Unfortunately, Smokey's coal has a high particulate content, and, therefore, the company is adversely affected by state and local regulations governing smoke and d..

What is the 48-bit ethernet address of your computer : What is the 48-bit destination address in the Ethernet frame? Is this the Ethernet address of gaia.cs.umass.edu - What is the 48-bit Ethernet address of your computer?

Calculating the costs of regulation : Hathaway-Ross Instruments, Inc., manufactures an innovative piece of diagnostic equipment used in medical laboratories and hospitals. OSHA has determined that additional safety precautions are necessary to bring radioactive leakage occurring durin..

What you liked and/or disliked about the book : Don't write just the bolded lines from each chapter. Write about what was included in each chapter. You are welcome to add what you learned or how you felt, but you will be graded on writing about what was included in each chapter.

Computing the horizontal merger guidelines : The following table shows premerger market share data for four hypothetical markets. Assume that the Department of Justice has received a merger proposal from the third-largest and the fifth-largest competitors in each market

What role did public health play : What role did public health play in the historical decline in mortality rates? Suppose you were hired as an adviser to a developing country and you were versed in the theory of production, the historical role of medicine, and the modern-day health ..

Sales dollars required for target net income : Sales dollars required for target net income Break-even point in units Break-even point in dollars

Identify leadership styles of jimmy hoffa and robert kennedy : Identify, compare, and contrast the two different leadership styles of each one. The research paper must be 6-8 pages of written text (not including the cover page and reference page), roughly 1500-2000 words.

User Account

All Pages