In a market with six banks of equal size, two of the banks propose merging. Does the merger violate the U.S. Department of Justice's guidelines?
What will be an ideal response?
With six equal sized banks, each has a market share of 16.67%. The initial HHI is 6 × 16.672 = 1,667. The new HHI is (4 × 16.672) + 33.342 = 2,223. The new HHI is over 1,800 and is an increase of more than 200, so it violates the merger guidelines.
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Which of the following is not typically disclosed in the financial statements regarding share repurchase programs?
A. The reason for the share repurchase program. B. The dollar amount remaining under the share repurchase program. C. The time period the repurchase program will be effective. D. The dollar amount of the board-approved share buyback.
When a company designs a promotion or event near a major sporting event to capitalize on the attendees to the event without being an official sponsor, it is:
A) allusion marketing B) incidental marketing C) distractive marketing D) saturation marketing
Which consumer group tends to show more brand loyalty and make shopping a family event, with children having a big say in the purchase decision?
A) Hispanic Americans B) African Americans C) Arab Americans D) working class consumers E) middle class consumers
A company is most likely doomed to failure in a foreign country if it__________
Fill in the blanks with correct word.