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Corporate Finance Assignment Solution

   

Added on  2020-09-08

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Corporate Finance -Coursework

Table of ContentsEXECUTIVE SUMMARY.............................................................................................................1INTRODUCTION...........................................................................................................................21.1 Strategic position of Repsol and its strategic options:..........................................................22. YPF is worth as an independent company and potential value after acquiring by the Repsol:.....................................................................................................................................................6Q3: Key factors those are effect the level of acquisition............................................................9CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................12

EXECUTIVE SUMMARYNowadays, this has been observed that each company is applying to make out certaintools which help out to make certain effective tool which would help the firm to gain sustainabledevelopment. Although, M&A is one of the best effective tool which would help out to makecertain things effective and efficient tool. Acquisition is the tool to redirect and reshape corporatestrategy which has never been higher. There are so many managers today which purchase a firmfor accessing to markets, goods, technology advancement, resources, or the skilled managementtalent which is less risky and faster than attainment the similar objectives via inner efforts.1

INTRODUCTIONUnder this case, this can be observed that the Repsol is intending to buy the YPFcompany as Repsol is one of the dominant oil organisation which have its registered office atSpain. For taking oil reserve and benefits of broad level, Cortina had embarked on the strategy ofacquiring oil assets via Latin America (Brealey and et. al., 2012). He started to take Yacimientos,Petroliferos Fiscales S.A. (YPF) at the Argentine government declared that this will offer itsblock of shares. As, the company was the highest oil organisation throughout the nation, andtwelfth biggest in reserves. Management of YPF had resisted go through a friendly acquisition.To fulfil a takeover of the organisation, Cortina will have required to appeal to the shareholdersin the form of tender offer in order to buy their shares. Unsolicited tender offers were highly rareevents in the cross-border M&A normally and most importantly between emerging anddeveloped countries.1.1 Strategic position of Repsol and its strategic options:In the international business corporation, organisations need strategic thinking and onlyby forming effective strategies which could become strategically competitive. A businessstrategy is a complete master plan which incorporate how firm would attain its mission andobjectives (Fracassi, 2011). Strategy is presuming to be the important as this is universal innature. This assist companies to make pace with the dynamic environment. This enhancemotivation of the employees and reinforce decision making. This incorporates the basis forapplying the actions. The main intention of this paper is to make and assess the behaviour of the Argentinegasoline market and to assess competitive effects on that market of merger between Repsol andYPF, which emerge in 1999. By doing so, there are following answer which are required to beanswer in the following questions:(a). Did merger have direct influence on the prices and quantities which are traded in themarket?(b). What kind of market structure elaborates the behaviour of the industry better?(c). Did the structure vary as a consequence of the merger?(d). Which are the welfare implications of that change?2

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