Describe the firms in the proposed merger. List their annual sales, and extent of their operations. It would help to include sales of the top four firms.
There have been several mergers of large firms within oligopolies. In this assignment, you are to select one merger of publically traded companies that has occurred in the last five years. You can find these by doing an internet search using the terms such as “recent mergers and acquisitions,” or you may go to FTC.gov and review their recent cases and proceedings at https://www.ftc.gov/enforcement.
- Write a paper that describes the principle firms, their industry, and that summarizes either the arguments in support of the merger or the arguments opposing the merger. The core of the paper should be approximately 2 pages in length, excluding the title page and bibliography.
- In addition to the 2 pages of content, include a title page, abstract, and bibliography.
Some Things to Consider: Industry Description
- Describe the firms in the proposed merger. List their annual sales, and extent of their operations. It would help to include sales of the top four firms.
- From the firms’ point of view, what are some of the incentives to consolidate?
- Describe the competitive environment within the industry.
Some Things to Consider: Summaries
- Explain whether the competitive environment in this industry benefits society or not.
- Does the merger increase market concentration?
- Is a high degree of market concentration a boon or threat to consumers? Explain.
- How would the merger benefit the firms?
- How does the merger benefit society? Explain.
- Is this merger damaging to society? Explain.
You might use one or more of the following concepts: productive efficiency, administrative efficiency, or dynamic efficiency.