CEGE - Working Papers / Preprints
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- Quantifying the Coordinated Effects of Partial Horizontal AcquisitionsPublication . Brito, Duarte; Ribeiro, Ricardo; Vasconcelos, HelderThe growth of private-equity investment strategies in which rms often hold partial ownership interests in competing rms has led competition agencies to take an increased interest in as- sessing the competitive e¤ects of partial horizontal acquisitions. We propose a methodology to evaluate the coordinated e¤ects of such acquisitions on di¤erentiated products industries. The acquisitions may be direct and indirect, and may or not correspond to control. The method- ology, that nests full mergers, evaluates the impact on the range of discount factors for which coordination can be sustained. We provide an empirical application to several acquisitions in the wet shaving industry.