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Kahramanmaras Travel on financial economies, including lower transaction costs and better coverage by security analysts 3. tax effects, where the combined enterprise pays less in taxes than the separate firms would pay 4. differential efficiency, which implies that the management of one firm is more efficient and that the weaker firm’s assets will be better managed after the merger 5. increased market power due to reduced competition. Some of these reasons for mergers are good for the economy and consumers since they will receive equal or better goods and services for lower prices, and other reasons, such as decreased competition, may hurt consumers. The ANTITRUST division of the Justice Department regulates mergers and acquisitions. Managers often cite diversification as a reason for a merger. Kahramanmaras Travel 2016.

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