Discussion Form Assignment Example | Topics and Well Written Essays - 750 words

Discussion Form - Assignment Example The article brought in pricing concerns that would allegedly be affected by the merger, specifically with other Modelo brands. Finally, the third article indicated that compliance with settlement provisions to the merger deal conforms to the merger regulations posed by the DOJ. The merger was originally perceived to bring the respective market shares of each of the organization’s respective brands to a staggering 46% of the U.S. market. As such, it was identified that the merger would benefit the firms involved through dominance and entrenched leadership in the U.S. beer market; as well as the ability to control market prices. A maverick firm is described to exhibit a pivotal role in a merger transaction through its potentials for influencing pricing strategies. As such, Modelo was identified as a maverick firm in terms of its ability to significantly affect the prices of competitors in the beer market through a previous joint venture that the manufacturing organization had forged with. The primary concerns of the DOJ is that if the merger application, in its original conditions would be approved, there would be perceived increases in the market prices of beer due to the elimination of Modelo as a previously independent competitor. The market definition of the merger is a merger for beers in the U.S. market. Since the merging organizations were noted to assume number 1 and number 3 positions, respectively, the merger would definitely consolidate their respective market shares and would dominate the beer industry. Their consolidation was perceived to violate anti-trust regulations in terms of jeopardizing competition in an equitably fair playing field. Their union could be perceived to tantamount to the creation of a monopoly through the apparently large market share that these two organizations would create after the merger. One strongly believes that there are