Use these steps to find the antitrust claim made by the Justice Department to prevent the merger

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Use these steps to find the antitrust claim made by the Justice Department to prevent the merger of Anheuser-Busch InBev and Grupo Modelo. Refer to the antitrust claim to answer the questions that follow.

i. Go to U.S. Department of Justice, Antitrust Division (www.justice.gov/atr).

ii. Click on “Antitrust Case Filings” in the bar at the left and then click “Filter and Sort.”

iii. Set Date to “2013,” Case Type to “Civil Merger,” and select Search.

iv. Find the case U.S. v. Anheuser-Busch InBev SA/NV and Grupo Modelo S.A.B. de C.V. Click on the title to go to the website for the case. v. Scroll to the bottom of the web page and click on “Complaint.” Then click on “Attachment” to review the case.

a. Prior to the merger, what is the U.S. market share for Anheuser-Busch InBev and Grupo Modelo? (See the pie chart on page 2.)

b. In part IV, section C (Relevant Geographic Market), how does the Justice Department define a beer market? Why?

c. Based on the information in part V, in how many markets would the proposed merger exceed the HHI threshold of 2,500 points and be considered highly concentrated?

d. In Appendix A, find the post-merger HHI calculations. Note that “Delta HHI” means the change in HHI. Which market experiences the greatest increase in the HHI ratio and is the most concentrated? Which market is the least concentrated? After the merger, what happens to the HHI for the United States as a whole?

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Microeconomics

ISBN: 978-1319098780

5th edition

Authors: Paul Krugman, Robin Wells

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