Anheuser-Busch,InBev NV,the maker of Bud Light,proposed a merger with Modelo,the maker of Corona.At the time of the proposed merger,AB InBev NV held 39% of the beer market,Miller/Coors held 26%,Modelo held 7%,and Heineken,the last of the big four held 6%.Other beer makers combined hold the remaining 22% of the U.S.beer market.The combination would give AB InBev NV 46% of the market.Modelo has been one of the market players that has resisted the parallel price increases in the industry.
-Which of the following is correct?

Question

Anheuser-Busch,InBev NV,the maker of Bud Light,proposed a merger with Modelo,the maker of Corona.At the time of the proposed merger,AB InBev NV held 39% of the beer market,Miller/Coors held 26%,Modelo held 7%,and Heineken,the last of the big four held 6%.Other beer makers combined hold the remaining 22% of the U.S.beer market.The combination would give AB InBev NV 46% of the market.Modelo has been one of the market players that has resisted the parallel price increases in the industry.​
-Which of the following is correct?

Quizplus · Accepted Answer

The proposed merger between Anheuser-Busch, InBev NV (with 39% market share) and Modelo (with 7% market share) would result in a horizontal merger, as both companies are direct competitors in the beer industry. This merger would increase AB InBev's market share to 46%, which could potentially result in the company having more market power to set prices.

Anheuser-Busch,InBev NV,the Maker of Bud Light,proposed a Merger with Modelo,the