25
Dec

Increase of Mergers

Comments Off on Increase of Mergers

It is quite obvious that many that many media articles have disclosed the mergers and acquisitions of large corporations.

A merger or acquisition is a combination of two companies where one corporation is completely absorbed by another

corporation. The less important company loses its identity and becomes part of the Aimportant corporation which retains its identity. A merger extinguishes the merged corporation ,and the surviving corporation assumes all the rights, privileges

and liabilitities of the meed corporation.

Regulation is based on the concern that mergers inevitably eliminate competition between the merged firms.

This concern ¬†is most acute when the participants are direct rivals because courts often presume that such arrangements aare more prone to restrict output and to increase prices.The government carefully; scrutinizes¬† proposed mergers. On the other hand since the 1980’s, the federal government has become less aggresssive in seeking the prevention of mergers.

Having worked for District “Wholesale Drug Corporation,in DC, during the 50’s, and having owned and operated a

neighborhood drug store during the 60’s,I have observed the CVS pharmaceutical corporation acquire the Peoples

Drug store corporation.Also the Rite Aid corp acquired the Drug Fair chain in the DC area and lately the huge

Walgren drug chain acquired the Rite Aide chain.

Recently the following mergers have occurred.

The huge Pfizer pharmaceutical chain merged with alergan group valued at more than 150 billion would create world’s largest drug maker.

Anthem health insurer is buying King Cigna in $54.2 billion deal.US let’s AT&T buy Direct TV for $49 billion dollars.

Ahold NV and Delhaize group would create one of the biggest US supermarket chains.

Many media articles have quoted government officials state that small businesses have provided many jobs-I belive

that the increased growth of Amazon.Com that sells just about any products will force many small retailers out of business.

Amazon.Com doesn’t need to merge-recently it was announced that Amazon.Com will eliminate using the UPS delivering

their packages and acquire their own delivery vehicles.

 

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