Merger company

Each year trillions of dollars worth of merger and acquisitions take place world wide . Apart from keeping a small army of investment bankers and lawyers busy, these mergers can also generate significant cost savings for the businesses involved. These can incluce such things , are the elimination fo duplicated operations to take advantage of economies fo scale, the integration of complementary distribution systems, the ability to bargein more effectively with suppliers due to increased order sizes, and soon.  However,  the fact that cost savings are possible doesnot mean they will be realized, and even if they are, it is a different matter whether  consumers will benefit. 

Merger announcements  often come with impressive sounding costs savings. This can help convince shareholders that the merger is good for the bottom line. About the decade later, after the much publiciseda falure of the two businesses to successfully integrate theri operations, they seperated. Differences in corporate culture, ego clashes and elusive cost saving are among the many reason such merger can fail.  The announcements of impressiiv cost savings may also be used by businesses   to try to convince the public authorities to approve their mergers.  Usually,when two major competitors in a relatively concentrated industry announce such  plans, their merger, will be investigated by the relevant competition authority.  

They are two main ways in which businesses may exagerate cost savings to justify mergers that are actually bad for consumers.

1.  To promote a merger to shareholders   which sounds good but may just be mepirebuilding, neither good for shareholders not for consumers but possibly food for the senior managements.  

2. To try to get a mergers approved by the competition authorities which is actually good for the shareholders but bad for consumers since it results mainly in reduced competition. 

Here are some good things to look and to do in merging practices. The better you should understand the manner first and pick that the right for you, check this  out and pick as useable as you need :

1.  Scientific Forex

2.  Forex Trendy

3.  Trademiner, Stocks, Futures and Forex

4.  From penny to buks

5.  Vladimirs Forex Signals & Mentoring

6.  Forex Signals

Some mergers where the claimed cost saving and other synergie are genuine and significant.  The merger of Disney and Pixar comes to mind.  Arguably, the majority of mergers belong to this last category, in part due to the role the competitions authorities play in investigating potentially anti-competitive mergers and scrutinising claims of cost savings.  This has avoaded too many mergers falling into the first  two categories or indeed such mergers even being proposed in the first place. Consumers may not always from mergers, but the odds that they do are improved.

source  : Juliant Wrigth ( associate professor in the department of economics, National University of Singapore.