Ketchup on hotdogs

US food giant Heinz is to merge with Kraft Foods Group, creating the third-largest food and beverage company in the US. Heinz shareholders will own 51% of the combined company with Kraft shareholders owning a 49% stake. The “mega deal” will create the world’s fifth-largest food and beverage company.  Its brands will include Kraft, Heinz, and hotdog maker Oscar Mayer, with combined sales worth some $29bn and a portfolio that includes eight $1 billion-plus brands.  Regulators and shareholders from Kraft ...

Mergers and Acquisitions Boom

2014 is on track to be the biggest year for global mergers and acquisitions in a decade. The corporate world is in the midst of a grand shopping spree. Over $2 trillion of corporate mergers and acquisitions have already been announced so far this year; 44% higher than in the same period last year.By June, there had been $786 billion worth of mergers and acquisitions in the United States, not far off from the total for all of 2007, the ...

Case studies and concepts: Lenovo

Growth is a topic that can be used as the focus for all 6 business management concepts: Change Culture Ethics Globalisation Innovation Strategy As a result, it will be useful for students to select a case study that relates to growth, as this can satisfy many questions set on Paper 2, section C. Given the broad nature of possible questions, it will be beneficial for students to research large multinational concerns to illustrate, and support, an answer to a concept based ...

Firms look to spend their money as economies come out of recession

During recessionary times, firms will normally hold back from investments, especially as demand falls. With most major economies worldwide showing the early stages of a recovery and confidence levels among businesses and consumers increasing, large firms are beginning to review their growth options for the next few years. Growth strategies available for firms include external growth through mergers and acquisitions. In the US, merger and acquisition activity in the oil-and-gas industry has reached the highest first-quarter deal volume in more than ...

A marriage made in heaven

Firms have a choice when it comes to growth. The IB syllabus requires consideration of both internal/organic and external growth, and within external growth students need to evaluate joint ventures, strategic alliances, mergers and takeovers as a means of achieving a firm’s growth objectives. In 2011, PwC the global professional services consultancy put the total value of merger and acquisition deals at $149 billion, up by a third from 2010, with the average deal coming it at $105 million, up from ...