(University of the Witwatersrand, Johannesburg, 2023) De Villiers, D.; Mncube, Liberty
We test the use of the Coordinated effects Index (CEI) proposed by Loertscher & Marx (2021) as a screening tool for merger analysis where coordinated effects are the main concern. We applied the metric to a recent merger in the soya meal market in South Africa. Testing the results against the decision of the Competition Tribunal of South Africa, returned a Negative-Negative result, meaning that the CEI metric indicated no risk of coordinated effects relating to the merger which is in line with the final decision of the Tribunal. This provides a foundation for the use of the CEI as a tool in the competition authority’s methodological toolkit
