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Ikea bought Romanian and Baltic forestsIntroduction: In 2 0 1 5 , Swedish furniture giant bought forests in the Baltic States amounting to a whopping
Ikea bought Romanian and Baltic forestsIntroduction: In Swedish furniture giant bought forests in the Baltic States amounting to a whopping hectares. In addition, it bought the acre forest in Romania.Rationale: Wood is one of the most important components of Ikeas products as it manufactures furniture. The merger helped it manage its own forest operations. It enabled the company to have access to sustainably managed wood for the long term. It helped it gain better control of its main raw material wood. In addition, it helped Ikea to hedge against timber price fluctuations in the Baltic. Another rationale for the decision was that it enabled it to diversify its assets, which helped it in the longterm goal of achieving resource independence. The companys goal was to increase its sales to $ billion by This decision would help it achieve this goal. One of the concerns with Ikeas decision was its environmental impact and some encroachment concerns. Before this decision, Ikea was banned from cutting trees in Russia for a brief period. Hence, Ikea laid special emphasis to allay these concerns by agreeing to manage wood sustainably. It said that it would take extra care to protect the environment and ensure the welfare of local communities. VerticalIn May United Airlines known then as UAL Corporation acquired Continental Airlines. The merger also granted stakeholders shares of UAL stock for each share they held in Continental Airlines. Once the shares transferred over, the company agreed to change its name to United Continental Holdings.In this way, the airlines were able to provide more service to customers while also streamlining their processes. Stakeholders benefited when the companies initially merged, and once the two were completely combined, United Continental Holdings became the largest airline in the world. HorizontalAmazon and Whole FoodsAmazon announced that it was buying Whole Foods for $ billion in The acquisition reflects both the vastness of the grocery business about $ billion in annual spending in the United States and a desire to turn Amazon into a more frequent shopping habit by becoming a significant player in food and beverages. Amazon, the online retailer, will now have brick and mortar grocery stores. Conglomerate NOTE:Vertical Horizontal Conglomerate Type of Merger:Vertical, Horizontal or ConglomerateFastMoving Consumer Goods FMCG company is heavily reliant on advertising. If it acquires an advertising firm, the advertising firm may be able to produce advertisements with a better understanding of the brand and its message. Automobile company merging with a tire company or an automobile battery manufacturer. Transaction: Heinz and Kraft A textile company merging with a cotton yarn manufacturer to help the textile company have control over its raw material cotton yarn. Transaction: Walt Disney and Pixar Animation Studies Berkshire Hathaway Inc. owns various subsidiaries from different industries insurance, financial, a newspaper company, major interests in GEICO, life insurance, annuities and jewelry sales. They are headquartered in Omaha, Nebraska. transaction between eBay and PayPal Steel is one of the important components in a car. An automobile company merging with a steel manufacturer helps it manufacture its raw material inhouse. Transaction: Facebook and Instagram General Electric Company GE diversified technology, financial services, aircraft engines, water processing, household appliances, power generation, industrial products, business and consumer financing. GEs segments are Aviation, Healthcare, and Transportation.
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