The problem aroused when the Federal Trade commission (FTC) declared its objection regarding these two company’s merger and acquisition decisions. In June, 1986 FTC opposed the issue of anti-competitiveness of these two carbonated soft drinks making companies. Taking into consideration this sudden inconvenience, PepsiCo and Seven-Up stepped back from their decision whereas, the Coca-Cola Company and Dr Pepper continued with their merging decision by taking this case to the Federal District Court.
This case is essential in at least two regards. To begin with, it spoke to a central government antitrust test to a real merger during a period when pundits of the Reagan organization's antitrust authorization orgs were guaranteeing that these offices had to a great extent deserted requirement. Second, it is a case in which modern investment thinking formed and affected the structure of a considerable lot of the contentions progressed by both sides, and additionally of the trial conclusion composed by the judge in this case.
This research report will be helpful to bring out the background of these two companies, analyze their economic arguments followed by both the complaint and the litigant and figure out the outcome. The main focus will be fixed on the Coca-Cola Company though the PepsiCo and Seven-Up is the player too. ...Show more