U.S. antitrust law is complicated, but current efforts to block a merger between grocery retailers Albertsons and Kroger may not fit the bill. Current triggers under the law include:
Market share of 70 percent or more, or less than 50 percent if barriers limit competition. Barriers to entry prevent competition. When a firm can raise prices above competitive levels without losing market share. The use of predatory practices. A Herfindahl-Hirschman Index score of 2,500 or higher, or possibly 1,500 to 2,500.
The proposed Albertson/Kroger merger would result in a firm still smaller than Walmart. Under the Rule of Three theory, firms consolidate until three firms dominate a market. GM, Ford and Chrysler once comprised the B...
What You Need to Know Today: Russia rejected calls for a ceasefire in the Black Sea, including a proposal to halt attacks on civilian shipping that could help restore grain flows from Ukrainian ports. Tyson Foods announced plans to permanently close its Joslin, Illinois, beef processing facili...
The big news in the cattle markets yesterday was Tyson Foods’ move to close two more beef plants. One of them, the Joslin, Illinois, plant was shuttered immediately after the announcement. The other, in Eagle Mountain, Utah, is a case-ready plant that does not slaughter cattle. Tyson also...
The Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) on Wednesday. In July, the CPI rose 0.1 percent, seasonally adjusted, and rose 3.4 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy, or the “core” infla...
