Friday, November 1, 2019
Impacts of Keystone Holdings, LLCs Merger with Compagnie de Saint-Gob Assignment
Impacts of Keystone Holdings, LLCs Merger with Compagnie de Saint-Gobain - Assignment Example The Keystone Holdings tried to acquire the Advanced Ceramics Business of Saint- Gobain and thereby eliminate the competitor from the market for alumina wear tile. Government tries to ensure competition in the market and thereby maximum choice and minimum price to the customers. My goal in this essay is to portrait the impact of the acquisition on society and firms. Keystone is the holding company of CoorsTek, Inc. (CoorsTek), which is a leading technical ceramics manufacturer, supplying ceramics based products for use in defense, medical, automotive, semiconductor, and power generation applications, among others. Keystone is headquartered in Golden, Colorado with facilities in North America, Europe, and Asia. Keystone manufactures and sells alumina wear tile for use in high wear applications at its facilities in Golden, Colorado. Saint-Gobain is a highly diversified, multinational company, headquartered in Courbevoie, France. The Advanced Ceramics Business includes ceramic components such as hot surface igniters, electro-ceramic parts for household appliances, ceramic balls for high-performance bearings, automobile water pump seals, special components for the semiconductor industry, agricultural spray nozzles, and other dense alumina components, such as alumina wear tile. Saint-Gobain manufactures and sells alumina wear tile out of its Latrobe, Pennsylvania facility. Oligopoly is a market organization in which there are only a few sellers of a product. So the actions of each seller affect other sellers also. Mergers and acquisitions are mainly a part of the oligopolistic market. The alumina wear tile market in North America can be considered as an oligopolistic market as there are very few firms in the industry. As the alumina wear tile market is an oligopolistic market, any action that the Advanced Ceramics Business takes has an impact on other competitors like Keystone Holdings. If Advanced Ceramics reduces the price of their product, the other players in the market are forced to reduce their prices also.