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Question 1 (25 Marks) Fordy (Ltd), an automotive manufacturing company is in the process of negotiating the acquisition of Gee-em (Ltd). The management estimates that

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Question 1 (25 Marks) Fordy (Ltd), an automotive manufacturing company is in the process of negotiating the acquisition of Gee-em (Ltd). The management estimates that the acquisition will result in economies of scale and the additional benefits will amount to R20 million. The following information is available for the two companies

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