Merger and acquisitions make economic sense if the whole is worth more than the sum of its parts, or stated otherwise, if synergy exists. The surplus value of horizontal mergers can be attained by: economies of scale in production and distribution, access to new markets, having a combined maiden office, removal of inefficient management, greater financial possibilities and combined immaterial assets (patents, trademarks and licenses). Vertical mergers shorten the industrial chain and savings can be made in procurement, more efficient communication is possible, as well as production can be more focused to market developments. A definition of synergy formulated by Sirower (1997) is as follows: Synergy is the enhanced
