SEARCH
You are in browse mode. You must login to use MEMORY

   Log in to start


From course:

Industrial Organisation 2022

» Start this Course
(Practice similar questions for free)
Question:

What are some exampels of things the competition authorities can impose on firms to do before an M&A is approved, so competition is not too limited in the industry?

Author: Hjalmer Pedersen



Answer:

What commitments can competition authority require to let a merger go through? • Selling of industrial plants, for instance to a competitor. • Selling intangible rights • Selling of shares from competitors • Repeal of exclusive rights and clauses • Influence on firm’s infrastructure (For instance a large gas line for everybody’s good) • Obligation to sell (inputs) to competitors • Providing information and increase transparency • Regulation of prices and discounts • Structural commitments: - Commitment to change the market structure, in the hope that effective competition can be ensured / created. - For example, the sale of holdings, installations, intangible rights, impact on infrastructure • Behavioral commitments: - Commitment that governs the merging company’s conduct during and after merger - For example, price regulation, the obligation to sell to competitors etc.


0 / 5  (0 ratings)

1 answer(s) in total