Mergers and Acquisitions

Mergers and Acquisitions (M&A) refer to the processes through which companies consolidate their Assets, resources, and operations. A merger occurs when two companies agree to combine their operations into a single entity, while an acquisition is when one company purchases another. M&A can be motivated by various factors, including the desire to expand Market Share, achieve synergies, diversify product offerings, or enter new markets.

Examples:

• Merger: The merger of Exxon and Mobil in 1999 formed ExxonMobil, creating one of the largest oil and gas companies in the world.
• Acquisition: In 2014, Facebook acquired WhatsApp for approximately $19 billion to enhance its messaging services and user engagement.

Notable Cases:

• Amazon and Whole Foods (2017): Amazon acquired Whole Foods for $13.7 billion, allowing Amazon to enter the grocery market and expand its reach into physical retail.
• Disney and 21st Century Fox (2019): Disney acquired 21st Century Fox for $71.3 billion, significantly increasing its content portfolio and strengthening its position in the media industry.