The use of the coordinated effects index (CEI) as a screening tool in premerger analysis

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Date

2023

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University of the Witwatersrand, Johannesburg

Abstract

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

Description

A Research Report submitted in partial fulfilment of the Degree of Master of Commerce (Economic Science) in the School of Economics and Finance, University of the Witwatersrand, 2023

Keywords

Coordinated effects Index (CEI), Screening Tool, Premerger Analysis, Firms, UCTD

Citation

De Villiers, D.. (2023). The use of the coordinated effects index (CEI) as a screening tool in premerger analysis [Master’s dissertation, University of the Witwatersrand, Johannesburg]. WireDSpace. https://hdl.handle.net/10539/38712

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