Morrision Safeway Merger

Morrisons is UKs fifth largest food retailer, with a market division of 12%. Morrisons announced £2.9 billion pounds, take everywhere ask over for the Safeway mountain range of UK super markets. By the end of the month, cite of potential buyers included, Morrison competitors like, Tesco, Wal-Mart, Sainsbury and Bhs fame, Philip Green. It all in all started on 9 January 2003: Morrisons made a £2.9m bid for Safeway, otherwise rivals in January the fourteenth such as Asda and Sainsburys make it a three-way takeoer battle, moreover the battle was not over it had just began because on the twentieth of January, Billionaire Bhs owner Philip Green in addition shows an interest in Safeways and joins the bid, two days later January 22 Tesco launches Safeway bid. US buyout medical specialist Kohlberg Kravis Roberts also expresses interest. Although with such large competitors Morrisions stood no chance at all, but it was soon discovered no company was fair enough to acquire Safe ways so on the 26th of September, Morrisons given over go-ahead for bid afterward question by UK contention watchdogs, the finally on the 15th of celestial latitude after a long battle Morrisons makes fresh £3bn locomote for Safeway, and the handle was sealed. Reasons for Takeover: Takeover: when a company buys over 50% of the sh ars of another company and becomes the controlling owner of it.

The tar lead area of Morrisons taking over Safeways was to secure the harvesting of its agate line in a sustain fit manner, while at the same term constantly improving the companys profitability. Morrisons pla nned on doing this by setting these followin! g objectives: try in enunciate to reach a leading sight in enchanting markets Focusing on securing a agonistical share of the supermarket segments. working(a) in order to improve the companys qualification and cut costs in operations. Continuous growth by dint of selective acquisitions for as long as they are able to create shareholder value. If these objectives were achieved apart from the competitive advantages enjoyed by...If you hope to get a full essay, order it on our website: BestEssayCheap.com

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