Question 1) Why mergers take place, What are its basics? Answer:- Mergers usually take place to two main reason
1) When one company wants to expand its business and wants to capture more customers
2) When one company is at the door steps of shutting down and they want to join another giant company to overcome their problems
When mobilink and warid merge together both the companies were in win win situation because both of them generate lots of profit.
I think some of the basic reasons for merger are as following
1) Strategic Goals:- Its is an all-purpose category motivation that include re-inventing of the company, protecting or increasing market share, accessing new market, acquiring new product and services, gaining access to resources and capabilities and …show more content…
So thats why Warid-Mobilink have 50m customers and still growing every day.
Question 3) Analyze the anatomy of Mobilink-Warid merger by describing which company gained more from this transaction?
Answer :- On the 26th of November 2015 Mobilink and Warid announced that they would merge into one making this one of the largest merger and acquisition deak to take place in Pakistan.
In order to understand the long term impact of this deal we have attempted to break this rather complex problem into four parts. ANATOMY OF MOBILINK AND WARID MERGER
1) Why do it in the First Place?
We are sure that mobilink did this merger for ‘’bigger market share’’ . this deceptively simple answer needs to be dug into a little more to understand why Mobilink or any other operator for that matter would really want to take up hassle of entering into an M&A merger