Determine how the merger is been done

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Reference no: EM132200837

Question: Government with an intention to scrutinize the mergers between companies came up with Anti trust law, which regulates how the merger is been done because companies mis utilize this to their own selfishness to decrease competition and decrease the quantity produced, so thereof they can increase the margin by increase of prices. But generally when a merger takes place, it should decrease the cost of production and thereof the prices should come down. So to keep a check of these malpractices, government keeps an eye on the mergers and acquisitions that are being made between companies to keep the end customer interests at safe. I agree to the government thinking of coming up these anti trust laws as it helps in following ways.

1. Regulating the mergers

2. Marinating the fair competitive environment.

3. Safeguarding the interests of the customers.

Reference no: EM132200837

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