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Acquiring a company in the same industry can lead to potential threats such as antitrust issues, which may trigger regulatory scrutiny and hinder the merger process. Additionally, it can create integration challenges, including cultural clashes and redundancy of operations, which could disrupt business continuity. Moreover, overestimation of synergies may result in financial strain, and the acquisition might alienate existing customers or employees who are resistant to change. Lastly, increased competition for market share can arise if the acquisition fails to deliver the expected benefits.

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2w ago

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