When Mergers Get the Green Light: Price Effects of Competition Authority-Approved Mergers in Finland

Using a difference-in-differences approach, we estimate the price effects of five mergers approved by the Finnish Competition and Consumer Authority following an in-depth review. Our findings indicate substantial heterogeneity in post-merger price outcomes: in two cases, prices increased; in two cases, no statistically significant price changes were observed; and in one case, prices declined. Industries that experienced market entry following the merger did not exhibit price increases. We also conduct several merger-specific analyses that allow us to link the estimated price effects to the pricing strategies of the merging parties and to merger-specific efficiencies.