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Finance & Accounting
Pages 7 (1757 words)
Multinational Acquisition Table of Contents INTRODUCTION 3 Overview 3 Research Objectives 3 Outline of the Study 4 LITERATURE REVIEW 4 Accounting Requirements and Challenges in preparing Financial Statement 4 Evaluation of Intangible Assets 6 Analysis of Special Issues in New Business Combination 7 Key Areas of Differences in the Acquired Company 8 References 10 INTRODUCTION Overview Multinational Acquisitions are common nowadays due to the turbulent global economic scenario which provides a very uncertain future for firms throughout the world.
In 2010, the world witnessed the acquisition of a famous multinational company Cadbury by Kraft Food Products. Kraft Foods, an American multinational, which deals in food products acquired Cadbury, a British multinational dealing in confectionary products, as a way to diversify its holdings. As such, in January 2010, Kraft Foods acquired Cadbury for ?11.9 billion ($19.6 billion) (Merced & Nicholson, 2010). This made Kraft Foods the biggest confectioner in the world. It has been recorded as the biggest food and beverage deal in European history according Reuters. The initial offer of Kraft Foods was 745p, per share which was increase by 14 percent to 850p per share. Initially the acquisition was opposed by the trade unions because they had the prescient concern that such an acquisition would necessarily lead to job cuts. However, Kraft Foods confirmed that the combined company would be able to create more jobs in UK, apart from the existing employees that Cadbury currently employed (Jones, & Dorfman, 2010). ...
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