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 strength and size, to present themselves as a uniting 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 are not easily categorised, it is no easy matter to dismember and explain the many variables under(a)lying success or failure of M&As.Historically, a distinction has been made between congenator and conglomerate mergers. Roughly speaking, congeneric firms are those in the same industry and at a similar level of economic activity, while conglomerates are mergers from unrelated industries or businesses. Congeneric could withal be seen as (a) horizontal merg ers and (b) vertical mergers depending on whether the products and services 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 wave of horizontal mergers took place in the United States between 1899 and 1904 during a hitch referred to as the Great Merger Movement. Between 1916 and 1929, the second wave was more of vertical mergers. After the great depression and World War II the thirdly 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.