Research and give an example of a Merger and a Consolidation (1 each), point

out the reason for the merger (e.g. cost reduction, lower risk etc) and the
benefits reaped resulting from the combination. (25 points for merger & 25 pts.
for consolidation)

Example of merger

The reason
1. Lower risk, because there market has been expanded.
2. Cost advantages, because there will be higher production which will result to
lower cost which is good for the customer.

Anheuser-Busch InBev is an example of how mergers work and unite companies

together. The company is the result of multiple mergers, consolidation, and market
extensions in the beer market. The newly named company, Anheuser-Busch InBev, is
the result of the mergers of three large international beverage companies—Interbrew
(Belgium), Ambev (Brazil), and Anheuser-Busch (United States).

Ambev merged with Interbrew uniting the number three and five largest brewers in the
world. When Ambev and Anheuser-Busch merged, it united the number one and two
largest brewers in the world. This example represents both horizontal merger and
market extension as it was industry consolidation but also extended the international
reach of all the combined company’s brands.

Example of consolidation

The reason
1. Market saturation, because there was too much supply in the industry. The
oversupply triggers a wave of mergers, acquisition, and bankruptcies. So large
companies acquire smaller ones while others run out of business. Subsequently,
only a few major companies are left.
2. Cost advantages, because it will be less cost to obtain the needed supply rather
than develop.

In Saudi Arabia there is no food panda app for the delivery but there are others
and there is one called hungrstation so recently what food panda did they
acquired the company so others will run out of business.