Professional Documents
Culture Documents
• Acquisition
– One firm buys a controlling, 100 percent interest in
another firm with the intent of making the acquired
firm a subsidiary business within its portfolio.
• In 2016, Engro Corporation was acquired by Dutch-based
company FriesLand Campina in $450million to enter Pakistan
market
• Paktel acquired by China Mobile and rebranded as Zong
Pakistan
• Tameer MicroFinance Bank now owned by Telenor and
renamed as Telenor Micro Finance Bank
• Nestle acquired Milkpak Group to enter in dairy market
• Dawlance was acquired by Arçelik Group in November 2016
for $258m
• Merger
– Two firms agree to integrate their operations on a
relatively co-equal basis
• In 2006, Habib Bank merged with Metropolitan Bank Limited,
later named as Habib Metropolitan Bank Limited
• Takeover
– Special type of acquisition strategy wherein the target
firm did not solicit the acquiring firm's bid
– Hostile Takeover: Unfriendly takeover that is
unexpected and undesired by the target firm
• 5. Increased diversification
– Difficult for the firm to enter the market which is
unrelated to their product line, so the acquisition
strategy is more effective when firm lack expertise.
• 7. Too large
– After acquisition, firm become too large to maintain
control resulting in;
– Bureaucratic controls
• Formalized supervisory and behavioral rules and policies
designed to ensure consistency of decisions and actions
across different units of a firm – formalized controls decrease
flexibility
• Restructuring Outcomes
– Short-term
• Reduced costs: labor and debt
• Emphasis on strategic controls
– Long-term
• Loss of human capital
• Performance: higher/lower
• Higher risk