My observation is companies whose Mcaps are reducing due to poor...

My observation is companies whose Mcaps are reducing due to poor performance are more likely to see their share price reduce to such a point where consolidation is more likely. This will explain why people assume if it consolidates the Mcap will go down - when consolidation happens it usually does - not due to consolidation itself but that poorly performing companies consolidate more than well performing ones - if mcap was going up, wait a bit and the need to consolidate is gone.