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 the above.

Question

Quizplus · Accepted Answer

The European Union evaluates the compatibility of a merger with the common market, which is presumed if the market share will not exceed 25 percent. Other factors may also be considered, but this is a key factor in determining whether the merger is acceptable or not. The other options listed are not accurate methods used by the EU in evaluating mergers.

When Evaluating the Effect of a Merger, the European Union