Mergers.

MERGER: A+B=C ACQUISITION: A+B=A Mergers - defined as an amalgamation of two or more firms to form one new company RECENT MERGERS: Norwich Union+ CGU Walmart+Asda Natwest+Bank of Scotland AOL+Time Warner Wellcome+ BeechamKline TRENDS: Controlled in the UK since 1965 Monopolies and Merger Act, subsequently repaled by the Fair Traiding Act Occurs in waves: 1.wave 1920 2.wave 1960 3.wave 1970 4.wave 1980 REASONS FOR MERGERS: 1.growth 2.economies of scale 3.power 4.better management 5.accumulated …

…of goods. 3. of promotiong, through competition m the reduction of costs and the developmect nd use of new techiques and new products, and of facilatationg the entry of new competitors into existing markerts. 4. of maintaincing and promoting the balanced distribution of industry and imployment in the UK. 5. of mainticing and promoting compereve activity in markets outsidw the UK on the part of producers of goods , and of suppliers of goods and services in the UK