Pre-Deal HHI Baseline
1,620
Moderate
Post-Deal HHI Post-Divestiture
2,110
+490 pts (ΔHHI)
Labor Monopsony Risk Union Impact
32/100
Mitigated
Clearance Probability DOJ / FTC / States
78%
Settlement Path
Market Share Distribution & Remedy Allocation
Merged Firm Divested Assets Rivals DOJ Safe Line

State AG Enforcement Conditions

Federal Regulatory Clearance Bounds

Remedy calculated: Divestiture package and union safeguards yield viable clearance pathway.
Understanding Merger Guidelines (HHI), Labor Monopsony, & Divestiture Relief

2023 DOJ / FTC Guidelines

The updated antitrust merger guidelines state that a market with an HHI over 1,800 is highly concentrated. If a transaction increases the HHI by more than 100 points, it creates a regulatory presumption of substantially lessened competition under Section 7 of the Clayton Act.

Labor Monopsony & Union Challenges

Recent merger challenges (such as state AG suits backed by guilds) specifically focus on buyer power over specialized labor (e.g., Hollywood screenwriters, VFX talent, healthcare nurses). Settlements require explicit salary floors, independent greenlight quotas, and pension contributions.

Structural vs. Behavioral Remedies

Antitrust enforcers generally prefer structural relief (clean asset divestitures to well-capitalized buyers). Behavioral commitments—such as non-discrimination clauses or arbitration agreements—are used alongside divestitures to appease state attorneys general and union intervenors.

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