Merger motives - Essay Example

Only on StudentShare

Extract of sample
Merger motives

The product and market differences currently enjoyed by Boots and Alliance, will merge together in the hopes of stimulating greater growth than could be expected as separate entities. Their confidence in growth in shown by the fact that they will be paying 2.5 times of dividend despite the two companies having different dividend policies. It is aimed that the merger will be finalised in April 2006. Most companies, if not all, do mergers because they expect to perform better and be worth more together than as being apart. There are numerous benefits that companies gain from mergers and the Boots-Alliance deal is no different.
Alliance had long ago announced that its plans for growth included acquisitions and mergers. With a history of acquiring patents and new pharmaceuticals to add to their product line, the addition of the Boots health and beauty line will be an appropriate addition to spur revenue growth. Alliance's drug pipeline, though not dry, has few new pharmaceuticals on the horizon. Isprelor, a new delivery method for the existing drug Misoprosol, is set for release sometime in 2006. Posidorm, a synthetic Melatonin, has entered late stage trials and hopes are for a 2007 release date (Alliance-Unichem). Posidorm, if approved, is expected to increase the Boots-Alliance revenue stream by as much as 20 percent in 2008. ...Show more


The announcement of the proposed merger of Boots Group PLC with Alliance Unichem on 3rd October 2005, will result in the creation of UK's largest pharmaceutical company. When completed, the combined companies will own a 40 percent market share of the wholesale and a 17 percent share of the pharmacy market (BBC, 2005)…
Author : smarquardt
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Merger motives"
with a personal 20% discount.
Grab the best paper

Related Essays

Business Opportunity analysis
Usually, it involves a grower with a large acreage with a host of production activities from spring to fall. The steps involve pruning, insect and disease control, weed control, pollination and harvesting. The Lowbush Blueberry Moisture Sensor comes in at the stage of insect and disease control, which is a vital process.
5 pages (1250 words) Assignment
The Merger of Granda and Compass
"Usually mergers occur in a consensual setting where executives from the target Company help those from the purchaser in a due diligence process to ensure that the deal is beneficial to both parties." 1 The main aim of the study is to study merger between UK media and leisure group Granada and compatriot foodservice provider Compass.
8 pages (2000 words) Research Proposal
Management motives
According to statistics from the web resource, the amount of mergers only until 2002 has reached 4,363 worth over $291,7 billions1 and the majority of the deals was done within Internet, Healthcare, Telecommunications, Banking and Semiconductors industries.
9 pages (2250 words) Essay
Merger and Acquisition in China
The significance of this study is twofold. First, the advantages of the merger and acquisition activity in China will be identified, as there has been a growing trend in the prevalence of mergers and acquisitions all over the world, especially in developing economies like China (Finkelstein 1999).
28 pages (7000 words) Coursework
Merger and Acquisition in China Coursework
Therefore it will be very important to understand how this trend impacts on the Chinese economy, as the country is effectively competing with other countries for FDI. Secondly, this study is significant as it points out the causes of the failures of the merger and acquisition activity in China.
40 pages (10000 words) Coursework
The motives underlying of merger and acquisitions
There are many benefits of merging or acquiring other companies depending on the motive of the company. An analysis of different cases of UK firms that went through acquisitions and mergers show that their success or failure mainly depended on the approach and strategy they
8 pages (2000 words) Essay
Merger, Acquisition, and International Strategies
Merger and acquisition have for long been exploited as an avenue for business growth and development and especially during takeoff to international market. In the US, mergers
7 pages (1750 words) Essay
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email