Business merger analysis

Should a merger between Gatorade and Squash be approved?

Project details

  • Client

    Postobon and PEPSICO
  • Services

    Definition of relevant market to support merger approval request.

  • Team in charge

    Marcela Meléndez

  • Year

    2014 and 2015
  • Categories

Project summary

In order to contribute empirical evidence to merger evaluation by the Colombian competition authority, standard qualitative and quantitative techniques were used to define the relevant market for Gatorade in Colombia.

Quantitative analyses using micro data for beverage markets showed that a merger between Gatorade (Pepsico) and Squash (Postobon) would not facilitate monopolization of the isotonic beverage markets because Gatorade and Squash are not close substitutes. In particular, the demand for Gatorade was shown to be unaffected by changes in the price of Squash.

Highlights

  • Product: Consulting report.
  • Presentations: Superintendencia de Industria, Comercio y Turismo (SIC). 2014 and 2015