The major objective of the FCT analysis in acquisition and merger is to prevent the likelihood of reduced completion that leads to higher prices and lowering of quality of goods and services to the consumers (Pitofsky). The parties involved in the merger process may not finalize the deal yet until the waiting period as required by the HSR Act has passed or when early termination of the waiting period has been allowed by the government.
The merger between the two companies is a congeneric merger. The two companies operate private different services although they operate in the same industry (Cooper and Finkelstein). They do not compete for the same suppliers or customers. The major goal of such a merger is to create a new larger organization with a bigger market share as the internal estimates for Kableworks have told its management (85% control of the tv services). Because the two merging companies of different services to the same customers, they will have an opportunity to combine some of its operations such as manufacturing and as a result reducing the cost of production.
Kableworks Company is excited about the merger because it will enjoy not only a bigger market share but also eliminates critics from the Indirect TV which was one of its major competitors. On the other hand, Indirect Company is safe because of stiff competition from Kableworks Company which could have seen them removed from the market considering their lower worth compared to Kableworks (DePamphilis).
Although the merger increases the market share of Kableworks, it should be approved by the FTC since the two companies offer different services. Besides, Kableworks does not unfairly interfere with the competitive structure of the industry. FTC should only reject the proposed merger if it unfairly interferes with competition in the market.
Works cited
Cooper, Cary L, and Sydney Finkelstein. Advances In Mergers And Acquisitions. Bingley:
Emerald Group Pub., 2009. Print.
DePamphilis, Donald M. Mergers, Acquisitions, And Other Restructuring Activities.
New York: Elservier/Academic Press, 2008. Print.
