Mergers and Acquisitions Assignment Example | Topics and Well Written Essays - 3500 words

Mergers and Acquisitions - Assignment ExampleThe exception to this is when both parties agree, irrespective of the relative chroma and size, to present themselves as a nuclear fusion reaction rather than an acquisition. An example of a true merger would be the joining of Glaxo Wellcome with SmithKline Beecham in 1999 when both firms together became GlaxoSmithKline. An example of an acquisition posing as a merger for appearances sake was the takeover of Chrysler by Daimler-Benz in the same year. As already seen, since mergers and acquisitions atomic number 18 not intimately categorised, it is no easy matter to analyse and explain the many variables underlying success or ill luck of M&As.Historically, a distinction has been made between congeneric and conglomerate mergers. Roughly speaking, congeneric firms be those in the same industry and at a similar level of economic activity, while conglomerates are mergers from unrelated industries or businesses. Congeneric could also be se en as (a) horizontal mergers and (b) vertical mergers depending on whether the products and service are of the same appearances a mutually supportive nature. Horizontal mergers may come under the scrutiny of anti-trust legislation if the result is seen as turning into a monopoly.The first rove of horizontal mergers took place in the United States between 1899 and 1904 during a period referred to as the Great Merger Movement. Between 1916 and 1929, the second agitate was more of vertical mergers. After the great depression and World War II the third wave of conglomerate mergers took place between 1965 and 1989. The fourth wave between 1992 and 1998 saw congeneric mergers and even more hostile takeovers.