… a transaction likely to be challenged by regulators? When Herfindahl index…??
post merger <1000, no challenge. post merger 1000-1800, if the increase is above 100, potential challenge. post merger >1800, if the increase is above 50, potential challenge. from the back of my head… could be off.
calc the HHI index before and after merger. If it increases by more than 50, and is more than 1800 after merger, then challenged increases by more than 100, and is between 1000 and 1800, then its likely challenged if its less than 1000, then never.
deepstack31 Wrote: ------------------------------------------------------- > calc the HHI index before and after merger. If it > > increases by more than 50, and is more than 1800 > after merger, then challenged > > increases by more than 100, and is between 1000 > and 1800, then its likely challenged > > if its less than 1000, then never. How is HHI index calculated??
mfbarbmff Wrote: ------------------------------------------------------- > post merger <1000, no challenge. > post merger 1000-1800, if the increase is above > 100, potential challenge. > post merger >1800, if the increase is above 50, > potential challenge. > > from the back of my head… could be off. I thought HHI index ranged from 0 to 1?? If HHI Index = 0.0032 then 1/0.0032=313 firms (Mock SMGI Case scenario)
Just remember one is HI and one is HHI. Apparently one guy wanted to be special. But the only difference between the two is that one uses market share as a decimal, and the other as market share x 100. 1800 is the same as .18 from one system to another. Focus on the bigger picture.