Competition after mergers near review thresholds

Michael Weichselbaumer

International Journal of Industrial Organization, 2024, vol. 94, issue C

Abstract: Size thresholds determine whether a national authority reviews a merger and separate national and supranational responsibility. Firms could pursue competition-reducing mergers before they come under any regulatory oversight. Using data on German procurement auctions, I analyse competition effects near review thresholds. Four years after a merger, competition in procurement auctions decreases after mergers that are reviewed by the German national authority, relative to mergers below the threshold. However, when acquiror and target competed in procurement auctions before the merger, competition relatively increases after a German national merger review. Anti-competitive effects after nationally reviewed mergers without pre-merger activity in procurement may get unnoticed by the authority.

Keywords: Mergers; Threshold; Competition; Procurement auctions; Regulation (search for similar items in EconPapers)
JEL-codes: D44 G34 K21 L22 L40 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:indorg:v:94:y:2024:i:c:s0167718724000213

DOI: 10.1016/j.ijindorg.2024.103066

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