In 2015, Anheuser-Busch InBev offered $104.2 billion to acquire SABMiller. The U.S. Justice Department approved the merger, but only after the two beer giants agreed to sell off a number of brands, including Miller Lite, Peroni, and Snow (the world€™s top selling beer produced in China). Anheuser-Busch InBev sought the merger to increase its global market share. The accompanying table presents the global market share before and after the merger for the world€™s ten largest brewers.

a. Using the table, calculate the HHI for the global beer market both before and after the merger.

b. Based on the HHI calculated in part a, how has the market structure for the global beer industry changed?

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Market share Brewers Before merger After merger AB InBev 21% 29% SABMiller 10 Heineken 11 Carlsberg 6. China Resource Brewery Ltd. Tsingtao Brewery Group 4 Molson-Coors 3 4 Yanjing 3 3 Kirin 2 BGI/Groupe Castel