conglomerate merger

By contrast, vertical and conglomerate mergers do not immediately change the number of competitors active in any given market.

On this basis it would seem that a conglomerate merger is unlikely to fall foul of the guidelines.

Conglomerate mergers involve firms that operate in different product markets, without a vertical relationship.

This danger is especially apparent in conglomerate mergers.

Many conglomerate mergers are divested shortly after they are completed.

Some concern has also been expressed about the impact of conglomerate mergers on the economy and it is this issue which is addressed next.

Finally, there are conglomerate mergers, where the production activities of the two firms are essentially unrelated.

In addition, vertical and conglomerate mergers may also improve a company's efficiency by better co-ordinating their different production stages.

If there remain effective single-product players in either market, competition is unlikely to deteriorate following a conglomerate merger.

As such, conglomerate mergers seldom occur today.

Mr. Porter's research focuses on conglomerate mergers rather than acquisitions by companies that already have an understanding of the industry they are entering.

The judgment acknowledges that conglomerate mergers can be anticompetitive in particular circumstances and provides useful guidance for future cases.

Conglomerate mergers can serve various purposes, including extending corporate territories and extending a product range.

Since conglomerate mergers involve companies with completely independent products, these mergers have only small opportunities for a direct reduction in production costs.

Conglomerate mergers have the smallest scope for obvious gains through economies of scale but have become increasingly common in recent years.

The Guidelines provide examples, based on established economic principles, of where vertical and conglomerate mergers may significantly impede effective competition in the markets concerned.

As a result, the main source of anti-competitive effect in horizontal mergers is absent from vertical and conglomerate mergers.

There are two basic forms of non-horizontal mergers: vertical mergers and conglomerate mergers.

Two broad types of non-horizontal mergers can be distinguished: vertical mergers and conglomerate mergers.

Because a conglomerate merger is one between two strategically unrelated firms, it is unlikely that the economic benefits will be generated for the target or the bidder.

"Conglomerate mergers between companies in different businesses are now acceptable, as are vertical mergers between suppliers and producers in the same industry.

One example of a conglomerate merger was the merger between the Walt Disney Company and the American Broadcasting Company.

Many observers suggest that the conglomerate merger wave of the 1970s, a wave that eventually saw most such mergers redivided, was driven by ambitions of acquiring firms' managers.

Vertical integration between firms operating at different stages of production usually increases economic efficiency, although they may sometimes have an anticompetitive effect. Conglomerate mergers are between firms in unrelated businesses.

In its assessment, the Commission will consider both the possible anti-competitive effects arising from conglomerate mergers and the possible pro-competitive effects stemming from efficiencies substantiated by the parties.