It is often difficult to draw a distinctive line between mergers and takeovers, and the terms tend to be used rather loosely to describe the process by which firms combine. In principle, a merger may be defined as a combination of firms of approximately equal standings on the basis of an agreement between their respective managements who recognize some mutual advantage in he arrangement. A merger can result in a new company being formed or one of the two companies absorbs the other. Required: i. Describe various types of mergers and critically discuss the motives for undertaking mergers and takeover. ii. Identify the organ(s) or institution(s) that regulates/approves the mergers and acquisitions in Tanzania and discuss all steps/procedures to be undertaken by the merging companies in Tanzania as required by the regulator for a merger to be successful. iii. Identify any recent Merger and Acquisition in Tanzania, discuss its type and the motive behind it.
It is often difficult to draw a distinctive line between mergers and takeovers, and the terms tend to be
used rather loosely to describe the process by which firms combine. In principle, a merger may be
defined as a combination of firms of approximately equal standings on the basis of an agreement
between their respective managements who recognize some mutual advantage in he arrangement. A
merger can result in a new company being formed or one of the two companies absorbs the other.
Required:
i.
Describe various types of mergers and critically discuss the motives for undertaking mergers
and takeover.
ii.
Identify the organ(s) or institution(s) that regulates/approves the mergers and acquisitions in
Tanzania and discuss all steps/procedures to be undertaken by the merging companies in
Tanzania as required by the regulator for a merger to be successful.
iii.
Identify any recent Merger and Acquisition in Tanzania, discuss its type and the motive behind
it.
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