Chapter 7.1, Problem 3QS1

Summary Introduction

To Determine:

The reasons of a company might engage in a cross-border merger or acquisition.

Introduction:

Cross border mergers or acquisitions are deals between domestic firms and foreign companies in the target country. There are some reasons for which a company might engage in a cross-border merger or acquisition. The trend of increasing cross border mergers and acquisitions has pick up the pace with the globalisation of the world economy.