Interviewer view · keep this screen to yourself
Will this cement merger face a hard review?
You run the case. Read the prompt, answer questions from the notes below, and share data only when the candidate asks for it or gets stuck. Score at the end.
Case timer
00:00
1. Read the prompt aloud
Read it slowly, then pause. Let the candidate ask questions before they structure.
Using the table above: cement company A wants to buy rival B in one Indian state. Cement is heavy and costly to move far, so the relevant market is local. Company A expects INR 300 crore a year of synergies (savings from combining). Work out the HHI before and after, the change, and what that means for the deal.
The prompt refers to Exhibit 1. After reading it, say: "Open Exhibit 1 now."
2. Answers to clarifying questions
This case has no scripted clarifying answers. Answer from the prompt, and say "assume what you think is reasonable" if the prompt does not cover it.
3. A model structure
Compare the candidate's structure with this one. A different split can be just as good if it is clean and fits the problem.
- Concentration before and after, then what it means for timing, remedies and the synergy case
- HHI before: sum of squared shares
- HHI after: Company A and Company B combined
- Key: Change in HHI: 2 x share of A x share of B
- So what: review depth, likely remedies, effect on value
Exhibit 1
The prompt uses this exhibit, so the candidate opens it right after you read the prompt ("Show exhibit 1" on their screen).
| Company | Share before | Share after |
|---|---|---|
| A (buyer) | 30 | 50 |
| B (target) | 20 | 0 |
| C | 25 | 25 |
| D | 15 | 15 |
| E | 10 | 10 |
So-what
After the deal one firm holds half the market, and the next largest holds a quarter.
4. The working, step by step
Each step shows how a strong candidate works it out. Share a new fact from it only when the candidate asks or is stuck, and let them do the math: the result in the dark box is what they should reach.
Step 1: HHI before
What a strong candidate does: 30 squared + 20 squared + 25 squared + 15 squared + 10 squared.
HHI before: 30 × 30 + 20 × 20 + 25 × 25 + 15 × 15 + 10 × 10 = 2,250
Step 2: HHI after
What a strong candidate does: Company A and Company B become one firm with 50 percent.
HHI after: 50 × 50 + 25 × 25 + 15 × 15 + 10 × 10 = 3,450
Step 3: Change
What a strong candidate does: The quick formula: 2 x 30 x 20. It matches 3,450 minus 2,250.
Change in HHI: 2 × 30 × 20 = 1,200
Step 4: Synergies at risk
What a strong candidate does: The authority may demand that A sells plants covering a third of the overlap. Then assume a third of the synergies go with them (an assumption to test).
Synergies kept if a third is lost (INR crore a year): 300 × (1 - 1 ÷ 3) = 200
The recommendation to listen for
At the end, say: "The CEO walks in. What is your recommendation?"
Expect an in-depth review, because the deal lifts the HHI from 2,250 to 3,450. The market is already highly concentrated at 2,250. The deal adds 1,200 points, because the combined firm would hold half the market (shares of 30 and 20 percent). That is far above the levels most authorities treat as a warning sign. The value case should assume a longer timeline and a likely remedy (a condition the authority sets, such as selling plants). That could cut synergies from INR 300 crore to about INR 200 crore a year. If the deal only works with all the synergies and a fast close, it is a weak deal.
Risks a strong answer names: The authority may block the deal outright, as the European Commission did with Siemens and Alstom; Customers (builders) may complain and slow the review.
Next steps: Define the local market by how far cement can travel at a sensible cost; Identify plants that could be sold with the least loss of synergy.
Score the candidate
Score each criterion from 1 to 5. A 2 or a 4 sits between the descriptions.
Total
0 out of 25
Score all five criteria to see the band and the feedback template.
Next: another case in Partner mode
Swap roles and run the next case, so you both practise answering and scoring.