Merger, Acquisition, And International Strategies

2215 WordsFeb 27, 20169 Pages
Assignment 4 Merger, Acquisition, and International Strategies Antwon Speller Strayer University BUS499 Capstone Professor David Gray, Ph.D. February 26, 2016 Ford Motor Company Merger, Acquisition, and International Strategies Ford, one of the oldest car manufacturers in the world, designs, builds and sells cars, utilities vehicles and Trucks (Ford Motor Company, “Market Line”.,2015.p.4). Part of the company core and affiliated automotive brands include Ford and Lincoln. Ford, through its subsidiaries, also provides vehicle-financing services. The firm operates 65 plants globally spread across North America, Europe, South America, Asia Pacific, and Africa (Market Line et al., 2015.p.4). The business operating…show more content…
In 2005, Ford sold its subsidiary Hertz, to a private equity group, within the same year, the company sold its interests in Mahindra & Mahindra and Vastera (Market Line et al., 2015.p.6). The company exchanged its 8.3 million shares in Ballard Power Systems for an equity interest in Nu Cell Sys, an equal joint venture with Daimler Chrysler (Ford Motor Company, “Market Line”.,2015.p.6). For the corporation that has acquired another company, merged with another company, or been acquired by another company, evaluate the strategy that led to the merger or acquisition to determine whether this merger or acquisition was a wise choice. Mergers and acquisitions (M&A) strategies have been popular among U.S. firms for many years (Hitt, Ireland, & Hoskisson, 2013, p.195). Firms use merger and acquisition strategies to improve on their ability to create more value for all their stakeholders, including shareholders’ (Hitt et al., 2013, p.195). A merger is a strategy through two firms that agree to integrate both of their operations. Although, most mergers that are completed are friendly in nature, acquisitions can be friendly or unfriendly (Hitt et al., 2013, p.196). An acquisition is a strategy through which a firm buys a controlling, 100 percent, or interest in another firm with intent of making the acquired subsidiary business part of their portfolio (Hitt, Ireland, & Hoskisson, 2013, p.196).
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