Spokesman confident caliber-abra will clear federal merger review; main question appears to be local markets – repairer driven newsrepairer driven news electricity facts ks2

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Caliber and ABRA announced Wednesday that ABRA’s parent company Hellman & Friedman would acquire a majority stake in the merged company, which will be named Caliber and be led by Caliber CEO Steve Grimshaw. static electricity in water The new Caliber would have more than 1,000 auto body shops across 37 states. gas unlimited Caliber owners Leonard Green Partners and OMERS Private Equity will hold minority shares.

Caliber and ABRA combining was a merger of “two equals,” and companies like Service King and Gerber still existed to compete with it, according to Mewes. electricity history pdf Despite the possible market share Caliber would have in some regions, Mewes didn’t foresee issues at the individual market level either. gas prices going up The FTC considers those as well as the national footprint when evaluating deals.

“There are two ways that a merger between competitors can lessen competition and harm consumers: (1) by creating or enhancing the ability of the remaining firms to act in a coordinated way on some competitive dimension (coordinated interaction), or (2) by permitting the merged firm to raise prices profitably on its own (unilateral effect),” an FTC website states. “In either case, consumers may face higher prices, lower quality, reduced service, or fewer choices as a result of the merger.”

From a competitive standpoint, Caliber now has significant market presence in each of the primary markets of its main competitors, Service King and The Boyd Group. gas out game directions In each state, with the exception of Michigan and a few less populous states, Caliber now has either the most stores, or a comparable number of stores relative to its competitors.

“A geographic market in an antitrust investigation is that area where customers would likely turn to buy the goods or services in the product market,” the FTC’s website states. “Competition may be limited to a small area because of the time or expense involved in buying a lower-cost product elsewhere. o goshi judo For instance, in a merger between two companies providing outpatient dialysis services, the FTC found that most patients were willing to travel no more than 30 miles or 30 minutes to receive kidney dialysis treatment. physics c electricity and magnetism formula sheet The FTC identified 35 local geographic markets in which to examine the effects of that merger. The FTC often examines local geographic markets when reviewing mergers in retail markets, such as supermarkets, pharmacies, or funeral homes, or in service markets, such as health care.”

“According to the complaint, the geographic markets for the retail sale of gasoline and diesel are localized, generally ranging from a few blocks to a few miles,” the FTC wrote. “The complaint alleges that without a remedy the merger would significantly increase market concentration for the retail sales of gasoline or diesel in each of the 71 local markets, resulting in a monopoly in ten markets and reducing the number of competitors in the rest to two or three.”

FOCUS Capital Partners managing director David Roberts was skeptical that the FTC would raise any issues with the merger, pointing to how the cellular provider market had largely shrunk to AT&T and Verizon. If a far larger sector was allowed to consolidate to that degree, the $33 billion collision market wouldn’t be a concern to regulators, he argued.

“It’s hard to speak generally about merger review because each case is fact-specific,” senior public affairs specialist Betsy Lordan wrote in an email. “But the agency seeks to determine whether there is competitive harm, and in the process, it defines both the geographic market and the product market where it alleges that the harm takes place.

“There are no specific cut off points in terms of market share, and the key considerations are whether a merger would cause competitive harm. static electricity sound effect Part of the equation involves barriers to entry. If barriers to entry are high, then it is less likely that there will be a lot of competition in the market. Another key part of the equation involves efficiencies: Does the merger provide efficiencies that prevent any potential harm that otherwise might arise?”

The FTC did thwart another noteworthy collision industry merger attempt about a decade ago, when its opposition to CCC’s plans to merge with Mitchell into a $1.4 billion company led to the deal collapsing. However, the estimating and total-loss valuation market shares of that ensuing company would have been more than 50 percent — far higher than the 10-12 percent financial experts estimated the merged Caliber would command overall. More information: