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Mergers

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While companies combining forces and creating mergers or joint ventures can expand markets and bring benefits to the economy, some combinations may reduce competition. Combining the activities of different companies may allow the companies, for example, to develop new products more efficiently or to reduce production or distribution costs.

However, some mergers may reduce competition in a market, usually by creating or strengthening a dominant player. The objective of examining proposed mergers is to prevent harmful effects on competition.