My Wiley study notes say the following:
If the HHI of an industry is 1000-1800, it is moderately concentrated, and an increase of the HHI above 100 (as a result of a merger) is likely to be challenged. Otherwise, if the increase is below 100, it will likely not be challenged.
My question is: what if the HHI is something close, like 1780? Even a 20 point increase will then push it into the 1800+ category, which is categorized as highly concentrated.
Even though the increase is just 20 points, will the merger be challenged on the grounds of it shifting the industry into high-concentration territory?
Thank you guys.