Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/183428
Authors: 
Norbäck, Pehr-Johan
Persson, Lars
Tåg, Joacim
Year of Publication: 
2018
Series/Report no.: 
IFN Working Paper 1199
Abstract: 
Private equity firms (PE firms) have become common owners of established firms in concentrated markets. We show that the threat of a PE acquisition can trigger incumbent mergers in an otherwise mergerstable industry. This can help antitrust authorities maximize consumer surplus because previously privately unprofitable - but consumer surplus-enhancing - mergers now take place. We thus predict that merger waves among incumbents should follow the development of a local PE industry.
Subjects: 
Antitrust policy
M&As
Private equity
Temporary ownership
JEL: 
G32
G34
L13
L22
L40
Document Type: 
Working Paper

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