Discussion questions 1 why do you believe the us

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Discussion Questions:1. Why do you believe the U.S. antitrust regulators approved the merger despite the large increase in industry concentration?
2.Did the timing of the proposed merger between Express Scripts and Medco help or hurt the firms in obtain regulatory approval? Be specific.
3.Speculate as to how the Express Scripts-Medco merger might influence the decisions of their competitors to merge? Be specific.Answer: The approval of regulators of this transaction could serve as a “green light” for other PBMs to feel that they would also receive merger approval if they were to pursue this strategy. In addition, increasing scale may be a requirement for future success as a PBM. Scale is necessary to achieve negotiating leverage with drug manufacturers, to provide customer support services, and to finance and operate geographically dispersed mail handling operations. Consequently, increasedconsolidation through M&A may be a natural result of this regulatory ruling.Gaining Regulatory Approval Often Requires Concessions By Merger PartnersKey Points:Regulators often consider market concentration when determining whether an M&A will drive up prices and reduce consumer choice and product/service quality.To gain regulatory approval, acquirers often are compelled to sell assets to another firm to either

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