A Merger Analysis of Carrefour and Tesco Essay example

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A Merger Analysis of Carrefour and Tesco

Introduction

I have decided using my knowledge of trade across different countries to propose and a merger for this piece of coursework. This merger was an idea of mine as I thought Britain's largest supermarket operator should merge with France's largest supermarket operator. Neither one nor the other company has particularly large market shares in the market in Britain for Carrefour, and France for Tesco, although each company has stores currently operating in those countries. This is why I have decided to investigate a merger between these two large companies, to discover if this external economy of scale is too large to increase profits, too
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Why Carrefour?

Carrefour has the largest market share in France with a 21% share of the market. It runs a chain of hypermarkets, which sell more than groceries; they have a diverse product range, which includes television and media products, garden products and athletic equipment. This diversity has given Carrefour a competitive edge and now it is the most popular store in France. However this large chain has little impact on the UK market and if it did then it could drive competition away. It has not yet established itself as a successful multinational company and could provide with this merger a larger amount of competition on a global scale against companies like Wal Mart.

The Aim =======

To create a successful merger, which will not affect the public in a bad way and will increase competition on a global scale, bringing all prices of many supermarkets down

Why Merge? ==========

This Anglo-European merger will affect not only the market dominance in their own countries but also in the entire world. This will heavily affect the global market dominance of Wal mart the world's biggest supermarket chain.

The merger will create new opportunities for the quaternary industries in creating greater capital for research and development of new products. This means that these new products are retailed in the stores, and the public will have a

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