Managerial Economics & Business Strategy 8th Edition by Michael Baye,Jeff Prince

Exercise 8

Del Monte has a long and rich tradidon in the American food processing industry. It is perhaps best known for packaging canned fruits and vegetables. Part of its success has involved acquiring other brands of canned fruits and vegetables. Suppose that Del Monte is continuing its business plan of expansion by acquisition and that the following table summarizes potential acquisition targets. As the CEO's horizontal merger and acquisition advisor, it is your task to guide the decision-making process. Based only on the information contained in the table, is a horizontal merger with one of these companies likely to pass the U.S. government's scrutiny and enhance Del Monte's performance? Justify your conclusion.