Firm A has a total market value of RM 200 million. It is planning to acquire Firm B, which has a total market value of RM 630 million. Firm A estimates that the merged firm will be worth RM 3050 million as a result of operating efficiencies. The financial accountants are advising that Firm A will have to pay a premium of RM 24 million in price to acquire Firm B. merger related costs and expenses are estimated at RM 42 million. Is there an advantage arising from merger, in particular to Firm A?

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