Legal Environment of Business 8th Edition by Henry Cheeseman

Exercise 3

Merger The Lipton Tea Co. (Lipton) was the second-largest U.S. producer of herbal teas, controlling 32 percent of the national market. Lipton announced that it would acquire Celestial Seasonings, the largest U.S. producer of herbal teas, which controlled 52 percent of the national market. R.C. Bigelow, Inc., the third-largest producer of herbal teas, with 13 percent of the national market, brought an action, alleging that the merger would violate Section 7 of the Clayton Act, and sought an injunction against the merger. What type of merger is proposed in this case? What is the relevant market? Should the merger be enjoined? R. C. Bigelow, Inc., v. Unilever, N.V., 867 F.2d 102, Web 1989 U.S. App. Lexis 574 (United States Court of Appeals for the Second Circuit)