Practicing Success
Identity the type, purpose and example of the merger discuss below. "Merger takes place between two companies that deal is the same products but in separate markets. A. Horizontal Merger B. Acquisition of Eagle Bancshares Inc. by the RBC Centura C. Acquisition of Mobiling telecom inc by Broadcom D. Market extension Merger E. Purpose to make sure that merging companies can get access to a bigger market and that ensures a bigger client base Choose the correct answer from the options given below: |
B, A, C only B, D, C only B, E, C only B, D, E only |
B, D, E only |
The correct answer is option (4) - B, D, E only Market extension mergers (D): A market extension merger takes place between two companies that deal in the same products but in separate markets. The main purpose of the market extension merger is to make sure that the merging companies can get access to a bigger market and that ensures a bigger client base (E). Example: A very good example of market extension merger is the acquisition of Eagle Bancshares Inc. by the RBC Centura (B). |