Competitive Business Environment For Corporate Finance World

1782 Words Feb 9th, 2016 8 Pages
1. Introduction

Many reasons such as globalization, technical developments, changing political relations between countries and liberalization cause a compelling and competitive business environment for the companies. This pressure to remain standing in corporate finance world makes companies to be in quest of rapidly effective ways to gain strenght and expand their business activities. At this point, Mergers and Acquisitions, which are two of the essential activities in capital markets to restructe a corporation or business activities and to achieve economic growth and reinforcement, can be counted as two of the mainstream activities of the today 's business world because of its advantages and immediate effects.

Merger simply can be defined as the combination of two or more similar size business entities into one company. Generally, the main aim of the mergers, which are basically a corporate strategy, are acquiring market share with the way of restructing companies to meet requirements in global competition. Prevalent objectives of the Mergers can be mainly counted as improvement of the profit, eliminating competition, utilization of existing resources and reducing tax burdens. However, it should be considered that, merger is a strategic tool for companies to reach their business objectives. Thus, reasonings of the mergers can very from business sector to companies ' priorities.

At this Juncture, we would like to analyze the merger of Royal Dutch Petroleum Company…
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