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In 2018, Amaze merged with Wholesome Foods and became the fifth largest grocer in the US by market share. This single manoeuvre shed almost $35
In 2018, Amaze merged with Wholesome Foods and became the fifth largest grocer in the US by market share. This single manoeuvre shed almost $35 billion in market value from companies in the US, Europe and Asia. The fall in value of rival supermarkets reflected fears over Amaze's financial capacity and its potential to win a price war between supermarkets. Amaze has the customer data to understand where, when and why people buy groceries, and it has the technology to integrate its offline and online platforms. When you're in the race to be the first trillion-dollar company, acquisitions can take you a long way. But not all companies share Amaze's success. In fact, out of 2,400 Merger \& Acquisition deals analysed by a prominent University's Business Review, 65% destroyed shareholder value. In the light of above scenario, you are required to: (i) elaborate on the types of mergers; (10 marks) (ii) explain the motives for mergers; and (10 marks) (iii) briefly discuss as to why mergers fail
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