Working Paper No. 1199

Threatening to Buy: Private Equity Buyouts and Antitrust Policy

Published: February 6, 2018Pages: 6Keywords: Antitrust policy; M&As; Private equity; Temporary ownershipJEL-codes: G32; G34; L13; L22; L40
Published version

Threatening to Buy: Private Equity Buyouts and Antitrust Policy Pehr-Johan Norbäck, Lars Persson and Joacim Tåg


Private equity firms (PE firms) have become common owners of established firms in concentrated markets. We show that the threat of a PE acquisition can trigger incumbent mergers in an otherwise mergerstable industry. This can help antitrust authorities maximize consumer surplus because previously privately unprofitable  but consumer surplus-enhancing – mergers now take place. We thus predict that merger waves among incumbents should follow the development of a local PE industry.

Pehr-Johan Norbäck

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Ph: +46 8 665 4522
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pehr-johan.norback@if...

Lars Persson

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Ph: +46 8 665 4504
lars.persson@ifn.se

Joacim Tåg

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Ph: +46 8 665 4524
joacim.tag@ifn.se

Interdisciplinary European Studies

Trust in the European Union in Challenging Times

2018-Trust-in-the-European-Union-by-Oxelheim.jpg

This is the first book in the Interdisciplinary European Studies collection. This volume provides an interdisciplinary perspective on trust in the EU from the vantage point of political science, law and economics. Lars Oxelheim, Lund University and affiliated to IFN, is one of the authors.

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