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Week 2 Alliances and Mergers
Week 2 Alliances and Mergers
Week 2 Alliances and Mergers
Merger
Acquisition
Page 3 Synergies
KEY VOCABULARY: Competitive ness
Shareholder value
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WORD
C H O O S E T H R E E W O R D S A N D W R I T E O N E S E N T E N C E W I T H T H AT
1. Shareholders will be voting on the proposed merger of the companies next week.
5. A Takeover bid takes place when a company gets the power over another company, through the purchase of
at least 51% of the shares.
6.Merger: It was decided to perform a merger to obtain better results.
7. Companies that focus on increasing shareholder value are more profitable, because they focus on reducing
costs and improving efficiency.
Top 10 Business Mergers and Acquisitions of All Time
https://www.youtube.com/watch?v=gQSsPsbfkZI
Top 10 Business Mergers and Acquisitions of All Time
- Facebook and Instragram
- City Corp. and Traveler’s group
- British petroleum and Amoco
- Royal Dutch Petroleum and Shell Transport and Trading
- Exxon and mobile
- Pfizer and Pharmacia
- GP Morgan
- ATT and BellSouth corporation
- Google + applied semantics
- Verizon and GTA
Merger and Acquisition
•A merger occurs when two separate entities combine
forces to create a new, joint organization.
•An acquisition refers to the takeover of one entity by another.
•The two terms have become increasingly blended and used in conjunction with one
another.
•Legally speaking, a merger requires two companies to consolidate into a new
entity with a new ownership and management structure, not necessarily under a new
name.
•In an acquisition, a new company does not emerge. Instead, the smaller company is
often consumed and ceases to exist with its assets becoming part of the larger
company. Acquisitions, sometimes called takeovers, generally carry a more negative
connotation than mergers. As a result, acquiring companies may refer to an acquisition
Page 4 Mega Mergers
Disney Daimler Benz
Starbucks Miramax
Chrysler Pepsico
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PAGE 4: TRUE OR FALSE? 2
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