Longtime reader JM remarks the following:
Think about how much influence this current situation may have on the future definition for anti-trust suits brought on by mergers and acquisitions. What will be the maximum threshold for total market share that will be allowed? We keep hearing how these companies are “too big to fail.”
Will the government put in measures and procedures to keep this growth from occurring? Which industries will be affected? Will this make smaller companies more or less competitive knowing they will not or can not be absorbed by larger players?
Insofar as government will not want to keep pumping trillions into bad business decisions, a likely future is that anti-trust departments will be put on steroids.
Then again, Merck and Schering-Plough think that mergers are the way of the future. Their reasoning? Efficiencies and combined product pipelines.
Hasn’t that always been the rationale behind mergers in pharmaceuticals? And is it working?
Is it working in banks? Healthcare? Automobiles?