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There exist several purpose for a takeover. It can either be opportunistic OR strategic.

As an opportunistic, we refer that the business simply saw the opportunity for buying a business at a certain price knowing that it'll give them profit.

As an strategic, there exist several reasons. A company may noticed that the business had better efficiency on their production line, so buying their company, a side from combining everything (profit gaining, raw material, etc.), the acquirer gets to know how to become more efficient on their production line. There are also other reasons like the case of Heineken buying FEMSA. FEMSA had a much bigger impact in Mexico, so Heineken (in their reasons for buying them) they bought FEMSA in order to penetrate the market.

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12y ago

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