Just like sweet and sour can balance each other quite nicely, some Jamaican spices have a sourness to them that will balance a blend with their fruity citrus-like vibrancy. Cardamom, ginger, cloves, nigella seeds and star anise are among the family of pungent spices. Island Spice Ltd is known by many customers both local and international for providing the best original and blended combinations of spices and its reputation far exceeds its existence. Island Spice Led, Jamaica's biggest spices maker has decided to launch a hostile bid for Trinidad's major spice maker, Dvanyas Seasonings. This is a rare case of a Jamaican company making an unsolicited hostile bid for a foreign company. Island Spice Led has competencies in Jamaican spices. The major destination markets for Island Spice Ltd exports have been the Caribbean and North America. The competencies of Dvanyas Seasonings lie in Indian herbs and spices and they have exports markets in America and Europe, It over comes entry barriers The Jamaican company with the takeover bid wishes to synergize its operations in the world market It also wants to take advantage of the reach enjoyed by the Trinidadian company in several countries where its products are not being sold presently. The move of this hostile takeover follows Dvanyas Seasonings' rejection to an agreement entered a year back. At that time Dvanyas Seasonings was suffering losses and it offered majority shares at a price of US $2 25. A total of 20% of the shares were transferred at that time. In one-year Dvanyas Seasonings was able to turnaround its operations and the company made handsome profits in the last quarter. The promoters, who have residual holdings of 35% in the company, are reluctant to transfer the shares now. They have rejected the agreement with a plea that the earlier offer price was not sufficient Island Spice Led has revised its offer to US $2.95. By this lucrative offer some of the large shareholders of Dvanyas Seasonings have revealed their interest for selling their stakes. Through the process of buying of shares in the market, Island Spice Led gradually consolidated its holdings in Dvanyas Seasonings to 45%. Being a major shareholder, they were ready for a takeover. At the same time, Island Spice Ltd was trying hard to improve their position so that they do not leave any space for Dvanyas Seasonings promoters in the future. Case Question 1- 1. Explain the popularity of mergers and acquisition strategies for firms such as island Spice Ltd when competing in the global economy Use examples from the case. (10 marks)