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Ayrıntılar SABANCI UNIVERSITY ECON 33
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AçıklamaSABANCI UNIVERSITY ECON 330 INDUSTRIAL ORGANIZATION REPORT MERGERS & ACQUISITIONS CASE STUDY: HP - COMPAQ MERGER by GÜL KAYADENİZ 5198 10.01.2003 MERGERS & ACQUISITIONS The first part of this paper consists of the definitions of merger and acquisition, the types of mergers, some causes and implications of mergers and public policy toward mergers. In the second part, there is a case study; which is the merger of two big companies, HP and Compaq. After analyzing this merger in terms of its affects on both companies, how it influenced the market; the paper ends with the impressions in Turkey about this merger. First of all, a merger can be defined as full joining of two or more separate entities into one. To be a legal merger, both businesses should dissolve and fold their assets and liabilities into a new separate third entity which is the new corporation. On the other hand, acquisition-sometimes called as a buyout- means taking possession of another business. Mergers continue an increasing pace. The United States Federal Trade Commission reports that the number of filings in 1999 was almost three times the number received in 1993. Between 1998 and 1999, the mergers in America increased by 20 percent and there appeared 9278 mergers all valued in total over $1425 billion. In September 2000, this number was $1050 billion. Some of the mergers were between Time Warner and American Online, British Petroleum and Amoco. So, why do firms merge? What are the causes of mergers? When we look from the buyer’s point of view, if the market changes so rapidly and product development becomes a luxury that is not always a viable option, then, mergers and acquisitions mean entering a new market. For example; when Nestlé acquired Rowntree- the owner of Smarties, After Eight, Kit Kat- its main purpose was to enter the British chocolate market. In this way, Nestlé was able save the costs of launching new bra...
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