Managerial Finance

Dr . Abd Alrazaq
Rababa
Issa Abo lbdeh Emad Al-
Rajabi
Mohammed Al-hanfi Mohammed Tabari
Mergers & Acquisitions
 Mergers
A company or institution or several economic establishments to another economic establishment and this is
done by way of annexation or hosting, and accordingly all its assets, liabilities, property and the joint
venture shall be transferred.
 1- This company should not be of a civil governmental nature.
Integration conditions

2- To have a legal or legal personality.

3- Desire to combine, accrue, or mix.
4- The merger process is permissible in some countries, even if it is in the
process of liquidation.
5- The merger takes place on companies of the same nature and form, as well
as of different forms, such as the merger of a joint stock company into a limited
liability company and vice versa.
6- Affiliate of a merging company, affiliate organization, affiliate organization of a
merging company
7- Termination of the legal or legal personality of the merged company.
8- Loss of eligibility for the merged company.
9- They possess the authority of Christ.
9- The necessity of amending an official amendment to the company.
10- Transfer of the financial liability of the merged company to the merging
company.
.
 How Do Companies Merge?

Negotiations stage The approval phase

of the merger
project
Project preparation Advertising and
stage for integration publicity

Negotiations stage:
in which the offer and demand and the desire of the representatives The approval phase of the merger project
of these companies to complete the merger process take place
in which the representatives of these companies present the matter
during this stage on the outlines of the merger process and
to the partners and shareholders of these companies for approval
preparation for signing the so-called merger protocols.
and approval of the completion of the transaction.

Project preparation stage for integration

Advertising and publicity
the project for the merger: in which the representatives of these companies prepare the In it, the formal signing between the two parties of the concluded
lists and data required of the contract shows all the legal and judicial conditions resulting from
The stage of approval of the merger project: in which the representatives of these the completion of this deal.
companies present the matter to the partners and shareholders of these companies for
approval and approval of the completion of the transaction.
Methods of corporate merger
Merging Joining
It is represented in merging one or more companies with another company, and with it
the moral capacity of the joining company, which is mostly companies with a
dilapidated and unstable situation, disappears, and all that it has becomes the
property of the joint company.

Merge by blending:
A situation of confusion arises when the two joined companies, establishments, or
establishments are dissolved and a new entity is established in which all assets and
liabilities are transferred to the new entity, in which the shareholders share their
shares according to the prescribed ratios.

Merger by Acquisition
A facility is acquired by another facility or several facilities through purchase, and it
becomes entirely a property of the new company that purchased it. In some cases, it
carries out its usual business and activity, but its profits are transferred to the acquiring
company.
1- The merger of the “United Saudi Bank” with the “Saudi
American Bank” and its name changed to Citibank “Samba
Financial Group” in 1999.

2- Merger of America Online and Time Warner

3- Axon and Mobil merger

4- China's BaitDance acquires Musical Lee

Examples of
corporate mergers
Acquisition deals witnessed by the world
in 2017 for major and emerging companies

 Amazon acquires Whole Foods stores

( $ 13.7 Billon)

 Google acquires HTC's Pixel segment

( $ 1.1Billon)

 Disney acquires 21st century fox

( $ 52.4 Billon)
A Swedish
company
acquires a smart
application
launched by two
Jordanians for
$205 million The
group said that it
had acquired the
Jawaker
application, with
the value of the
deal amounting
to about $205
million
Thank you
for listening