Quantifying the Coordinated Effects of Partial Horizontal Acquisitions

• Autor(a) principal: Brito, Duarte
• Data de Publicação: 2017
• Outros Autores: Ribeiro, Ricardo, Vasconcelos, Helder
• Tipo de documento: Artigo
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10400.14/25184
• topic: Antitrust; Coordinated Efects; Partial Acquisitions; Oligopoly; Diferentiated Products; Demand Estimation

Recent years have witnessed an increased interest, by competition agencies, in assessing the com- petitive e§ects of partial acquisitions. We propose an empirical structural methodology to quantify the coordinated e§ects of such acquisitions on di§erentiated products industries, by evaluating the impact of such acquisitions on the minimum discount factors for which coordination can be sustained. The methodology can deal with settings involving all type of owners and ownership rights: owners that can be internal to the industry (rival Örms) and external to the industry; and ownership rights that can involve Önancial interests and corporate control, can be direct and indirect, can be partial or full. We provide an empirical application of our proposed methodology to several acquisitions in the wet shaving industry that give rise to cross- and common-ownership structures. The results seem to suggest that the incentives of (i) the acquiring partyís Örm to coordinate are non-decreasing after an acquisition (independently of whether it involves full or partial Önancial or corporate control rights, by internal or external owners), (ii) the acquired Örm to coordinate are non-decreasing after acquisitions involving full or partial corporate control rights, but non-increasing after acquisitions involving full or partial Önancial rights, and (iii) the remaining Örms in the industry to coordinate are non-increasing after an acquisition (again, independently of whether it involves full or partial Önancial or corporate control rights, by internal or external owners).