Vertical mergers and conglomerate mergers
Contents
Place in the Framework
Vertical and conglomerate mergers raise theories that differ from direct horizontal overlap, including foreclosure, raising rivals' costs, access to competitively sensitive information, and entrenchment.
Core Questions
- Does the transaction create an ability and incentive to foreclose rivals?
- Does it raise rivals' costs or limit access to important inputs, customers, or data?
- Are there integration efficiencies or other procompetitive explanations?
Working Notes
Add notes here on vertical merger theories, conglomerate theories, entrenchment, elimination of potential competition, and guideline treatment.