U9 Mergers and Acquisitions - TACN3 (Kinh tế và kinh doanh quốc tế) FTU

Unit 9: M&As MERGER & ACQUISITION 1+1=3? Mergers and Acquisitions Reasons for M&As 1. Why do people get married? 2. Why do companies merge with/ acquire each other? 3. What are problems with marriage? 4. What are problems with M&A? A takeover/ An Acquisition ● When one company takes over another and clearly establishes itself as the new owner, the purchase is called an acquisition. From a legal point of view, the target company ceases to exist, the buyer "swallows" the business and the buyer's stock continues to be traded. Source: http://en.wikipedia.org/wiki/Mergers_and_acquisitions#Distinction_between_mergers_and_acquisitions Merger ● A merger happens when two firms agree to go forward as a single new company rather than remain separately owned and operated. This kind of action is more precisely referred to as a "merger of equals". The firms are often of about the same size. Both companies' stocks are surrendered and new company stock is issued in its place. Source: http://en.wikipedia.org/wiki/Mergers_and_acquisitions#Distinction_between_mergers_and_acquisitions