BUS430 Coursework Example | Topics and Well Written Essays - 750 words

BUS430 - Coursework Example In acquisition, the large company exists but the smaller company is entirely owned by the large organization. In most cases, the acquirer company purchases large portion or all shares of the acquired company thus gaining control over the acquired company. Merger and acquisition strategies are adopted by companies for different reasons. First, companies adopt acquisition and merger strategies for strategic rationale aimed at achieving strategic goals set by organizations. Secondly, a company can enter into merger or acquisition due management failure and financial losses. Political influence also contributes to mergers and acquisitions as they order public organizations to either merge or acquire each other. Other reasons for mergers and acquisitions include internationalization, globalization, accessing cheap resources, increasing production, diversification of products and acquisition of large market share. Several companies have merged, and other acquired other companies in the past few years. Mergers and acquisitions have been successful will others have been unsuccessful. Success or failure of either a merger or an acquisition depends on various factors. Some of these factors include cultural fit, core competency, communication efficiency, core activities of companies, the size of organizations and financial issues. Some of the successful mergers and acquisitions include PETRONAS Corporation acquiring Progress Energy and purchase of WhatsApp by Facebook Inc. PETRONAS Corporation is one of the energy utility multinational corporation is based in Malaysia. The corporation is owned and governed by the Malaysian government, but it actively participates in the international trade. PETRONAS Corporation decided to expand their market and extraction activities by acquiring a Canadian energy company, Progress Energy in December 2012. The acquisition of Progress Energy was agreed to be $4.6 billion that included share