ABC Company, manufacturing shoes, has taken over XYZ Company which also manufactures shoes at a small scale. What do you think will be the reason for this kind of takeover?
Following can he reasons for the take over:
- ABC Company may have decided to expand in terms of its production and wanted to raise its sales and turnover.
- ABC Company may have decided to expand its area of sales and so may be desirous to take over the marketing area of XYZ Company.
- ABC Company may have wanted to use the research and development of the XYZ company for raising its output and sales.
Concept: Types of Mergers
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