This paper analyzes a merger of large manufacturers with divestiture in the French coffee market. In contrast to …

supply contracts with, a downstream retail monopolist. If the merging firms can bundle their products, transfer pricing is … efficient before and after the merger. Absent cost savings, consumer and total welfare do not change, but the merging firms … extract more surplus. If the merging firms cannot bundle their products, the effects of the merger depend on the merged firm …