Nationwide Bank has approached Hometown Bank with a proposal to merge. The following table lists the sales of the banks in the area. Use this informatiojn to calculate the four firm consentration ration and the Herfindahl Hirschman index. Based on the U/S/ Department of Justice merger guidelines described in the text, do you think the Justice Department is likely to block the proposed merger?
Bank name/Sales (In millions)
Mega Bank/$900
City Bank/850
Nationwide Bank/735
Atlantic Savings/555
Bulk Bank/345
Metropolitan Bank/340
American Bank/265
Hometown Bank/120
Urban Bank/90