A Weakened Firm Defense Can Be Strong If The Competitive Threat Is Weak
Posted 07/7/09
Just how weak does a company have to be to rely on a weakened firm defense in a merger analysis? While the case law is sparse, courts have found such a defense compelling when one of the parties to a merger has been too weak to be a competitive threat.
In United States v. General Dynamics Corp., 415 U.S. 486 (1974), the Supreme Court approved a merger between coal producers who together had a high market share in a...