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mergers and acquisitions case study
Finance & Accounting
Pages 9 (2259 words)
Name: Tutor: Course: Date: University: Mergers and acquisitions case study Introduction An acquisition refers to instances in which one firm purchases another from its shareholders and gains control of the firm. One firm bids another in the event that the potential acquirer places on the potential victims are higher compared to the value placed on it by its present owners.
Foster’s Group, the biggest brewer within Australia, initially rejected the conditional, off-market, cash takeover of Australia $11.2bn (€8.3bn) acquisition approach from SABMiller representing all the issued shares in Foster’s Group Limited. The proposal to acquire the company aligned with the strategy detailing generation of a rewarding worldwide spread of businesses, and establishment of strong and effective brand portfolios. Australia manifests a strong, wealthy, and rising economy with a projected population growth accompanied by strong economic growth within Asia. Australia enjoys a profitable beer market in which Foster’s details the leading brewer with 7 of the top 10 beer brands, scale production, and a national distribution platform (Christopher 2012, p.169). The acquisition is in line with SABMiller orientation in acquiring and integrating brewing entities in a manner that benefits shareholders, business partners, employees, and the community at large. The paper explores a recent merger and takeover activity within Australia and its impact on shareholder returns and some implications to the theory of the firm as evident in the results. ...
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