Excel, a division of Cargill, was the second-largest firm in the beef- packing market. It sought to acquire Spencer Pack, a division of Land-O-Lakes and the third- largest beef packer. After the acquisition, Excel would have remained second ranked in the business, but its market share would have been only slightly smaller than that of the leader, IBP. Monfort, the nation’s fifth-largest beef packer, sought an injunction to block the acquisition, claiming a violation of Clayton Section 7. In effect, Monfort claimed the merger would result in a dangerous concentration of economic power in the beef-packing market, with the result that Excel would pay more for cattle and charge less for its processed beef, thus placing its competitors in a destructive and illegal price–cost squeeze. Monfort claimed Excel’s initial losses in this arrangement would be covered by its wealthy parent, Cargill. Then, when the competition was driven from the market, Monfort claimed, Excel would raise its processed beef prices to supracompetitive levels. Among other defenses, Excel averred that the heavy losses Monfort claimed were merely the product of intense competition, a condition that would not constitute a violation of the antitrust laws. The district court found for Monfort, and the appeals court, considering the cost–price squeeze a form of predatory pricing, affirmed. Excel appealed to the Supreme Court. Decide. Explain.