When evaluating the effect of a merger,the European Union seeks to determine:
A) the impact of the merger by totaling the total number of competitors left.
B) amount of capital invested in the combined companies in relation to the remaining competitors.
C) the compatibility of the merger with the common market, which is presumed if market share will not exceed 25 percent.
D) none of these are correct.

Question

Quizplus · Accepted Answer

The European Union evaluates the compatibility of the merger with the common market by considering factors such as market share, competition, and consumer benefits. A merger is presumed to be compatible with the common market if the combined market share of the merging companies is below 25 percent. This is known as the "one-stop-shop" principle. Options A and B do not accurately reflect the EU's evaluation criteria for mergers. Option D is incorrect as there is a correct answer.

When Evaluating the Effect of a Merger,the European Union Seeks