Mergers and Aquisitions

PLEKHANOV RUSSIAN UNIVERSITY OF ECONOMICS
INTERNATIONAL BUSINESS SCHOOL

CORPORATE FINANCE

Course work
«Mergers and acquisitions»




Moscow 2011
Contents

Introduction 3
Chapter 1. Mergers and acquisitions. What are they? 4
Merger. 4
Acquisition. 4
Difference between “a merger” and “an acquisition”. 5
Reasons for synergies. 6
Pros and cons of merger. 6
Pros and cons of acquisition. 8
Financing M&A 9
Chapter 2. Mergers and acquisitions. Examples. 12
Commercial bank of Scotland and National bank of Scotland. 12
History of Commercial bank of Scotland. 12
History of Royal bank of Scotland. 13
Merger. 15
L’Oreal and Bodyshop. 16
History of L’Oreal. 16
The history of Body Shop. 17
Acquisition. 18
Procter & Gamble and Gillette. 19
History of Procter & Gamble. 19
History of Gillette. 20
Acquisition. 21
Conclusion 22
Bibliography 24

Introduction
Nowadays most of the companies merge with other or make a takeover. All the famous international companies have a large portfolio of brands and not all of them were produced by the original established companies. Such companies as Unilever, Procter and Gamble, L’Oreal, etc. have a list of takeovers or mergers in their histories. That is why this topic is very important for the current economy and its development.
In my course work I would like to outline the main specifications of this both procedures: mergers and acquisitions. People often connect them in one phrase and operate these two terms like they are similar. In my work I would like to specify what these two words mean exactly.
Also, I would like to explain why companies provide mergers and acquisitions, what purposes rule by the directors of the companies when they decide to purchase some other companies or make a merger with them.
And the third option which I want to cover is the examples of different mergers and acquisitions. On these examples I want to show how all the purposes of the... [continues]

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