We analyze horizontal mergers when the acquirer holds a passive partial ownership stake (PPO) in the target firm prior to the merger. We show that a PPO reduces the minimal synergy level necessary to make a merger beneficial for consumers. It follows that an antitrust authority ignoring existing...

Minderheitsbeteiligungen in der Zusammenschlusskontrolle stärker zu berücksichtigen, ist umstritten. Minderheitsbeteiligungen können wohlfahrtsschädigende Wirkungen haben, da sie die Wettbewerbsanreize desjenigen Unternehmens senken, das Anteile an einem seiner Konkurrenten hält. Wir...

We analyze the efficiency defense in merger control. First, we show that the relationship between exogenous efficiency gains and social welfare can be non-monotone. Second, we consider both endogenous mergers and endogenous efficiencies and find that merger proposals are largely aligned with a...