Government Involvement in Mergers.
- Government Involvement in Mergers
Governments intervene in M&A; there are a number of reasons that lead to government interventions. United States in particularly is concerned with fair competition in the market economy (Dubow, 2011). Considering that Coca-Cola Company and Pepsi are the major players in American soft drinks, there are high possibilities that the merger would result to unfair competition, basing on the fact that the new organization will control the prices of the soft drinks in the target market (Gaughan, 2010). In other words, merger control is part of the government processes.
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