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Chapter 13: Problem 14

The merger between Exxon and Mobil was subject to antitrust regulation by a) the Justice Department only b) the European Commission only c) both the Justice Department and the European Commission d) neither the Justice Department nor the European Commission

Short Answer

Expert verified
The correct answer is (c): both the Justice Department and the European Commission were involved in the antitrust regulation of the Exxon-Mobil merger due to their multinational operations and significant market impact.

Step by step solution

01

Understanding the Merger Context

In order to solve this question effectively, it's crucial to first understand the context of the merger. The Exxon-Mobil merger was a significant event that combined two of the world's largest oil companies.
02

Understanding Roles of Regulatory Bodies

Regulatory bodies, such as the Justice Department in the US and the European Commission in Europe, have responsibility to prevent the creation of monopolies or any organization that could significantly reduce competition. It's important to note that the Justice Department is responsible for enforcing antitrust laws within the United States, whereas the European Commission has similar responsibilities within the European Union.
03

Identifying the Applicable Jurisdiction

Considering the multinational operations and significant market impact of Exxon and Mobil, it's reasonable to assume that merger would likely be subject to multiple antitrust regulatory bodies.
04

Getting to the Answer

Given the global implications of this merger and the jurisdictions of the bodies mentioned, the correct answer is (c): both the Justice Department and the European Commission.

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Most popular questions from this chapter

Which statement is false? a) Most of the largest U.S. corporate mergers and acquisitions have occurred since \(1995 .\) b) The U.S. government has stopped only a few mergers from occurring. c) There have been several large banking mergers in recent years. d) Virtually all large mergers have transaction values of more than \(\$ 100\) billion.

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