THE recent wave of conglomerate mergers has subsided considerably, but the effects of the large number of mergers are still being debated and subject to close scrutiny by government agencies. One of the most serious criticisms which has been leveled against conglomerate mergers is their presumed anticompetitive effect upon the industries of the acquired companies. This criticism has resulted in several concrete proposals to limit conglomerate mergers. The empirical analysis in this paper examines the effects of conglomerate mergers upon concentration ratios, the standard measure of competition. The results reveal no anticompetitive effects of the conglomerate mergers and provide no support for any proposed restrictions of conglomerate merger activity.