Merger and Acquisitions in the Four Noteworthy Nations

INTERNATIONAL
FINANCIAL MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
A). ...............................................................................................................................................3
B).................................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES ...............................................................................................................................8

INTRODUCTION
Merger & Acquisition are the way through which one company is merge with the other
company for their own benefits. With the help of this technique, the merge entity is getting large
and able to have more productive and efficient(Zhang, J., Zhou, and Ebbers, 2011). Through
merger, the new entity which is formed after merging is able to produce more products through
economies of scale and that is by they would to make the huge product with the same fixed
assets and this impacts to reduce the cost price of the product. Due to reduction in the cost price.
Company would able to earn more revenue through maximum selling. Merger and Acquisition
assist the firm to protect the from the hostile takeover bids. The present research depends on the
international merger and Acquisitions in the four noteworthy nations which contributes in the
international economy(Weber, Tarba and Reichel, 2011).
TASK
A).
Nowadays mergers and acquisition are the main contributor for the development of the
nation and country(Tarique and Schuler, 2010). The nations like- UK and USA are the inventor
of mergers and acquisition as more and more companies are thinking to merge in order to get
synergy in the firm. It has been analysed that the company could able to make their operations
effective and smooth with the help of mergers. However, mergers is needed in the firm where the
company is thinking to diversify their business. There are mainly two types of mergers are there.
CONGNERIC MERGER
CONGLOMERATE MERGER
Congeneric merger: This is happen within the same industry. The company form the
same sector are merged so that they could make synergy in operations(Sinha, Kaushik and
Chaudhary, 2010). Through this merger technique, company would able to produce more
products and this will helps the company to reduce the cost of the product and that is why,
company could able to get the sustainable development. Under this merger, company which are
from the same industry are merged but both the merging company and the merged company does
not produce the same products. Under this merger technique, organisations are connected to the
technology,market and manufacturing processes. Under this technique, there are two parts which