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Finance & Accounting
Pages 10 (2510 words)
Mergers and acquisitions occur in business companies all over the world. In mergers, two different companies come together to form a single company known as a parent company. In acquisitions, one big company acquires a smaller company so that the two companies transact business under a single owned company.
This paper seeks to examine examples of companies in the USA that were involved in a merger. Mergers often look forward to ensuring profits rather than losses in the business combination. The selected company that involved itself in a merger is the Continental Airlines Company. The company was involved in the merger with another airline company. The two companies were the entities in the merger. An entity in business or in mergers and acquisitions (M & A) describes the organization, company or corporation that is acquired by another organization, company or corporation or that merges with the other in order to ensure a successful business in terms of profits, quality of products and competition and its continuous and long term survival in the world's competitive markets (Harwood, 2005). In the year 2010, an airline company in the U.S, Continental Airlines, merged or was rather acquired by another company, United Airlines (UAL) Corporation, also an airline holding company in the U.S which had its headquarters in Chicago in the state of Illinois. The two airline companies merged to form the United Continental Holdings in October 2010. The merger took place to ensure that the new company founded posed stiff competition to other airline companies around the world. The merge was also to ensure better services than the services provided before by the individual airline companies. ...
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