Big Acquisition Research Articles

From the delisting case of P&G to its strategic adjustments and financial status in recent years

As a giant in the FMCG industry, P&’s every move has influenced the choice of consumers and the trend of the industry. In order to maintain their profitability and competitive position, they attach great importance to strategic management. They had their best moments. In 2008, P&G became one of the world’s top 20 companies with net profits of $12 billion. Big acquisitions had allowed them to grow rapidly and continuously. However, in 2013, they began to decline. Declining sales have forced P&G to make strategic changes. In 2019, a piece of news about Procter & Gamble’s delisting from Euronext Paris swept the Internet. In order to explore how large enterprises make the right strategic choice in the face of crisis and analyze the outcomings, this paper will start with the delisting case of Procter & Gamble, analyze its strategic environment, strategic adjustments and financial results in recent years, and finally form conclusions and some suggestions.

Analyze of Amazons Big Acquisition in the Industry of Retail: Whole Foods Market

There are different types of analyze about the Amazons acquisition of Whole Foods Market. This report gives an introduction of the two companies, Amzon is one of the bigeest E-commerce platforms in USA, and Whole Foods Market is a supermarket focused on the Natural organic food. Then this report analyzed the reason of the acquisition: Amazon would like to enter into the physical retailing and Whole Foods Market faced the financial problems . After that, this report analyzed the influences of the acquisition to Amazon using the SWOT model and PESTEL model in order to give a comprehensive picture of this picture. Considering that the acquisition happpend in 2017, and it might be uncomprehensive to give analyze or comment for it at earlier time, and it is more persuasive to give an analyze after 6 years. Based on the history data, this acquistiiton formed the win-win for the two companies, but there are still some recommends. For example, they should balance the online selling and the offline selling, solve the conflict between the high quality of the Whole Foods Market and the low cost of the Amazon, they should continue focus on how to be separated from the strong competitors.

Game subscription analysis--Take Xbox Game Pass as an example

Game subscription is a huge innovation made by Microsoft and an important development trend of the game industry in the future. This paper focuses on analyzing game subscription and mainly focus on Xbox Game Pass (XGP). This paper analyze the XGP’s operational mode and benefit. And future prospect of XGP. Through the research, XGP is benefit for both Microsoft themselves, game producers and users. Through the calculation of software hardware ratio, it can be concluded that Microsoft can definitely make money under the XGP model. XGP also helps game companies to provide financial support and reduce the cost and risk of promotion. XGP also reduces the decision cost for users. So this model is benefit for both Microsoft itself, game producers and users. In order to attract users to buy the XGP, the most important way is to increase the games that the users can play by the XGP. So Microsoft started a big acquisition spree in 2018, buying a lot of game companies, including, Recently, acquired Activision Blizzard. Game subscription is also the future of the game industry, and many other game companies have adopted the same strategy, such as SONY's PlayStation Plus (PS Plus), EA launched a subscription service in 2018: Origin Access Premier (now EA PlayPro).And perhaps more companies will join the game subscription in the future.

The Impact of Acquisition on Stock Value in Case of Warsaw Stock Exchange

Abstract Research purpose: Seven of 10 companies that have won the Polish Forbes edition Merge & Acquisition 2018 Ranking are listed on Warsaw Stock Exchange. The aim of the conducted research was to test if the biggest acquisitions have an impact on stocks value and is it possible for typical investor to create extra profit by using knowledge of acquisition based on public information. Design/Methodology/Approach: Using data from Warsaw Stock Exchange (quotations), typical measures such as rate of return, standard deviation (risk), correlation and transaction volume changes were calculated. Each of the case results obtained for the company was compared with the result for stock market indexes: WIG (Warszawski Indeks Giełdowy – main WSE index), WIG20 (WSE sub-index of the 20 largest companies), mWIG40 (WSE sub-index of 40 medium companies) and sWIG80 (WSE sub-index of 80 small companies). In addition, the outcomes were confronted with public news (from WSE Electronic System for Information Transfer). Findings: Conducted research has shown that generally successful finalisation of acquisition results in changes of stock prices behaviour. Unfortunately, observed reactions were not the same. Acquisitions induced both increases and decreases in stock prices; there was also no rule in case of risk change. Generally, acquisitions and merges had rather good influence in banking sector (which is still concentrating), but there was no common reaction in other sectors. Originality/Value/Practical Implications: The results will be useful for investors acting on Warsaw Stock Exchange, especially for individual investor who are not able to carry out detailed analyses. The research provides results including possible pre-effects and after-effects of making big acquisition by a large company. The negative market reactions were also shown.

Biotech year starts with a boom

The J.P. Morgan Healthcare Conference, the annual thermometer for the health of the life sciences industry, indicates that 2019 could be an active year for deal making. The conference kicked off with several big acquisitions, all focused on strengthening big pharma’s position in the competitive—and lucrative—cancer drug market. On the opening day of the meeting, attendees woke up to news that Eli Lilly and Company had offered $8 billion for Loxo Oncology. Loxo gives Lilly a pipeline of small molecules that address specific genetic drivers of cancer. They include the recently approved Vitrakvi, a TRK fusion inhibitor, which in November 2018 became the first small molecule to score US Food and Drug Administration approval for use based on the genetic profiles of people with cancer, rather than the location of their tumors. In addition to winning this so-called tissue-agnostic approval, Vitrakvi is notable for its swift path to market; it

United Technologies Corporation Buys Rockwell Collins, Inc.

A senior industry analyst focused on aviation and aerospace at an investment advisory firm in Northern Virginia, pondered the potential implications of the acquisition by United Technologies Corporation of Rockwell Collins for aviation around the world. It was certain that the deal would impact not only the two companies involved, but it would also have a substantial impact on their customers, suppliers, employees, shareholders, and others. Excerpt UVA-C-2415 Oct. 26, 2018 United Technologies Corporation Buys Rockwell Collins, Inc. Margaret Cortez, a senior industry analyst focused on aviation and aerospace at an investment advisory firm in Northern Virginia, pondered the potential implications of the acquisition by United Technologies Corporation (UTC) of Rockwell Collins for aviation around the world. The biggest acquisition in aerospace history had recently been announced, although many had speculated it might be forthcoming. No doubt the deal would impact not only the two companies involved, but it would also have a substantial impact on their customers, suppliers, employees, shareholders, and others. In its official press release announcing the acquisition, UTC Chairman and CEO Greg Hayes indicated: This acquisition adds tremendous capabilities to our aerospace businesses and strengthens our complementary offerings of technologically advanced aerospace systems. Together, Rockwell Collins and UTC Aerospace Systems will enhance customer value in a rapidly evolving aerospace industry by making aircraft more intelligent and more connected. The integrated companies' expertise in developing electrical, mechanical, and software solutions will allow us to deliver more innovative products and services and provide greater value to our customers and shareowners. Due to the complementary product offerings, the deal gave UTC “control over manufacturing of airline parts from ‘nose to tail.'” The price tag had been steep. UTC would pay $ 23billion for the company ($ 30billion including the assumption of around $ 7billion of Rockwell Collins' debt). Cortez decided that the potential impact of this acquisition might warrant some reflection. She wanted to start by looking at the effects of the acquisition on UTC's consolidated financial statements. . . .

Bobby's Got a Brand-New Car by Zidrou

Reviewed by: Bobby's Got a Brand-New Car by Zidrou Elizabeth Bush Zidrou Bobby's Got a Brand-New Car; tr. from the French by Vanessa Miéville; illus. by Sébastien Chebret. Words & Pictures, 2017 32p ISBN 978-1-91027-748-5 $17.95 R 3-6 yrs Today is the day: little Bobby is off to the car dealership to find his dream wheels. Treated with the utmost courtesy by the salesman, Bobby selects a blue convertible. As the salesman notes, it will be excellent for driving on a sunny day. As Bobby notes, it is large and beautiful and goes "'Vroom! for real.'" Completing the transaction with his magic card, "the one that pays for everything," Bobby is now king of the road, capturing the admiration of onlookers, magnanimously picking up his parents from work, and joyriding at high speed until "Dad feels a bit unwell in the back." Bobby secures his car in the garage for the night and falls asleep dreaming of his next big acquisition—quite possibly a jet. The twofold charm of this slender outing lies in the translucent layers of sleek, retro design elements and in the deadpan narration that allows listeners to decide whether Bobby is working through a fantasy or whether he's really living the life deluxe. It's subtly but clearly argued in the details that Bobby desires more than just a shiny car of his own—he also wants the power and respect that come from wielding a credit card (the salesman even looks away discreetly as Bobby keys in his PIN) and demoting his parents to shotgun and back seats. That's enough to make any kid holler "Vroom! for real." [End Page 98] Copyright © 2017 The Board of Trustees of the University of Illinois

Different Approaches for Determination of Internal Combustion Engines Performances

The automotive industry represents one of the most important segments of the world economy that has to be in a continue development. The latest procedures for determination of an internal combustion engine performance have a big acquisition cost and demand special conditions even if the tested engine has smaller dimensions. The present paper presents other accessible solutions for this matter.

BREAKING THE CYCLE

THE PHARMACEUTICAL industry has taken great pains to portray itself as an enterprise in transformation. With an influx of new managers in corner offices and laboratories, big drug companies say they are taking fundamentally new approaches to R&D, manufacturing, partnerships, and acquisitions, all aimed at revving up the industry’s speed, agility, and efficiency. Companies say they are restructuring themselves to thrive in a world with fewer blockbuster drugs. The recent news that Pfizer is buying Wyeth for an incredible $68 billion might seem to undermine the sincerity of such claims. Although casual news followers may be drawn to the story of a multi-billion-dollar business deal that is not a government bailout, readers familiar with the drug industry are likely invoking Yogi Berra: Deja vu all over again—another big acquisition that won’t solve the real underlying problems. Yet the deal is happening in an industry that has quietly transformed itself in recent years. Behind-the-scenes efforts at ...

Comments: Unconventional Interest

Editor's column High commodity prices and the need for new production are spurring great interest in unconventional oil and gas plays throughout North America. Majors, previously willing to cede mature areas to independents so they could focus on bigger prizes elsewhere, have taken renewed interest in their potential. Following the success of the Barnett Shale region in the US, attention has turned to the Haynesville Shale gas play in northwest Louisiana and east Texas, British Columbia, and the Bakken area in North Dakota. The Barnett Shale has been one of the great success stories in gas production in the past few years, thanks to advances in drilling and fracturing technology. That success, and the play's future potential, are discussed in-depth in an article in this issue that begins on page 48. Now other areas are attracting attention. An array of upstream acquisitions involving unconventional production have taken place in the past several months in North America involving both Canadian and US firms, and including independents and majors. In late July, BP became a participant in US shale gas with an acquisition of 90,000 net acres and 50 million ft3/D of gas production in the Oklahoma Woodford Shale gas area. That follows Shell's recent deal with EnCana for a joint exploration agreement to explore and develop the Haynesville Shale area. Chesapeake and its joint venture partner Plains Exploration & Production believe Haynesville Shale will eventually become the largest gas field in the US and the fourth-largest in the world. Shell also made the year's biggest acquisition to date when it paid USD 5.9 billion for Canada's Duvernay Oil, which has extensive acreage in western Canada's tight gas area. Of particular interest is the Montney Basin in northeast British Columbia, which has emerged as one of North America's most interesting gas plays. Traditionally, majors have sold off mature areas to independents as they looked for bigger and higher-potential fields outside of North America. But with resource nationalism limiting access and high oil prices making unconventional projects more economic, international oil companies (IOCs) are taking a new look at some areas in the US and Canada, particularly in light of the technological progress that has been made in fields such as the Barnett Shale. Independents such as Devon, Chesapeake, XTO, and EOG Resources have been the dominant players in developing North America's unconventional reservoirs, but that apparently is changing. Other newly active firms in these emerging plays include EnCana, which has begun investing heavily in the Haynesville Shale and the Horn River basin Shale in British Columbia and Hess, which is investing in Bakken. Most of the world's oil shale is in the US, with the US Geologic Service estimating about 2 trillion bbl of in-place deposits, but shale is very costly to develop and produce. But as IOCs continue to look for new sources of oil and access constraints hamper where they can go to find it, these challenging frontier areas—including shale, tight gas, heavy oil, and coalbed methane—should attract increasing attention going forward.

Liquid Air: the firm that acquisitons built

Young companies, like children, seem to suffer growing pains. This seems especially true when the company grows through acquisition more than it grows internally. Liquid Air of North America, the industrial gases company headquartered in San Francisco, is such a company. Liquid Air was started by an acquisition and it has grown largely through acquisitions of a number of small industrial gas firms, mainly in the South and West, but also in Brazil. The company's big acquisition of Allegheny Ludlum's Chemetron industrial gas business was agreed to in 1978, but only just completed. Liquid Air of North America is 54% owned by L'Air Liquide S.A. of France and about 32% owned by Allegheny Ludlum. The remainder of the stock is publicly held. L'Air Liquide had owned 78% of the company, but the number of shares of stock was decreased to provide for the acquisition of air separation business from Allegheny Ludlum in 1978. This reduced ...