Arc Corp,A Consumer Goods Manufacturer in Lumeria,proposed to Merge with Borton

Arc Corp.,a consumer goods manufacturer in Lumeria,proposed to merge with Borton Inc.,a consumer goods manufacturer in Arkadas.Arc Corp.cleared the antitrust scrutiny in Lumeria but failed to anticipate a rigorous antitrust scrutiny in Arkadas.As a result,the merger never took place.In this scenario,which of the following is most likely the reason for the failure of the merger?

A) The firms neglected the influence of informal institutions on the merger.
B) The firms neglected the influence of formal institutions on the merger.
C) The firms gave excessive importance to soft relational capabilities.
D) The firms overpaid for their targets.