What should be the result in given contention

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Von's Grocery, a large retail grocery chain in Los Angeles, sought to acquire Shopping Bag Food Stores, a direct competitor. At the time of the proposed merger, Von's sales ranked third in the Los Angeles area and Shopping Bag's ranked sixth.

Both chains were increasing their number of stores. The merger would have created the second largest grocery chain in Los Angeles, with total sales in excess of $170 million. Prior to the proposed merger, the number of owners operating single stores declined from 5,365 to 3,590 over a thirteen-year period.

During this same period, the number of chains with two or more stores rose from 96 to 150.

The United States brought suit against Von's to prevent the merger, claiming that the proposed merger violated Section 7 of the Clayton Act in that it could result in the substantial lessening of competition or could tend to create a monopoly. What should be the result?

Reference no: EM131390680

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