In the Headlines: Retailers drop merger

Today two of Chile’s largest retailers Falabella and D&S dropped plans to merge their operations into Latin America’s second largest retailer after it was rejected earlier this year by the country’s anti-trust commission.

The merger would have created a Chilean Walmart with a whole lot of power to influence the price of everything from food to domestic electronics to clothes and furniture. Falabella is a department store, something like Sears, and D&S owns one of the country's largest supermarket chains: Lider.

Critics argued it would destroy small businesses and give the company too much power over its providers, while others said it was necessary for the consolidated firm to compete internationally.

I think it is a good sign since it gives more opportunity for small business, there are so many ma and pa stores that would suffer from the conglomerate coming together.