The Use Of Conglomerate Mergers

Conglomerate mergers do not face as much contention as horizontal merger agreements. Conglomerate mergers will violate antitrust law if it serves to eliminate an actual or perceived potential competitor or if there are unfair advantages or a potential for reciprocity. For this anticompetitive reason, conglomerate mergers are scrutinized.

The following questions have been addressed in this article:

How are mergers that may potentially or actually eliminate a potential entrant evaluated?
How about mergers involving the actual potential entrants being excluded into the marketplace?
Would it not the true nature of a merger produce an “unfair advantage”?


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