Upward Pricing Pressure in Partial Acquisitions: Application to the Essilor Case

Jin Yangsoo ()
Additional contact information
Jin Yangsoo: Department of Economics, Sungshin Women’s University, 2 Bomun-ro 34da-gil, Seongbuk-gu, Seoul 136-742, Korea

Asian Journal of Law and Economics, 2016, vol. 7, issue 3, 343-367

Abstract: The price effects of a partial acquisition may be far more complex than those of a full merger. The discussion on this issue, however, has not been well developed in Asian countries, including Korea. However, a partial acquisition case occurred in Korea in which Essilor intended to acquire fifty-percent shares of its competitor, DM Optical. In this paper, we modify and reorganize theories of upward pricing pressure (UPP) in partial acquisitions and apply them to this case. This paper, therefore, intends not only to initiate a discussion, but also to suggest an exemplary method to conduct UPP analysis in partial acquisition environments. Specifically, it will contribute to methodological advances by analyzing the case in a fashion that circumvents limitations of time and data, the main obstacles merger reviewers often face, in practice.

Keywords: Essilor case; partial acquisition; upward pricing pressure (search for similar items in EconPapers)
JEL-codes: K21 L41 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1515/ajle-2016-0019 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:ajlecn:v:7:y:2016:i:3:p:343-367:n:1

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/ajle/html

DOI: 10.1515/ajle-2016-0019

Access Statistics for this article

Asian Journal of Law and Economics is currently edited by Noriyuki Yanagawa

More articles in Asian Journal of Law and Economics from De Gruyter
Bibliographic data for series maintained by Peter Golla ().