Every time a company merges, say 10% of the combined value of the new company is given to the government (perhaps with a discount if one or other of the merging companies has recently paid the merger tax).
The lack of the 10% fee for a company who didn't merge is effectively compensation for the fact it has less market control than peers in the same market who did merge.
Every time a company merges, say 10% of the combined value of the new company is given to the government (perhaps with a discount if one or other of the merging companies has recently paid the merger tax).
The lack of the 10% fee for a company who didn't merge is effectively compensation for the fact it has less market control than peers in the same market who did merge.