Merger and Acquisition

Which are two companies that have had M&A deal?

• BigC and Central Group

• KEB Hana and BIDV

• Vinamilk and GTNFoods

• CMC and Duoc Hau Giang

Which is one of the disadvantage of M&A activities?

• It opens up new markets for both companies.

• Legal issue in Vietnam, which is not complete.

• Being underestimated in comparison with foreign enterprise.

• It is a cost-effective method to fuel expansion.

For the purpose of reducing completion and increasing market share, two companies with the same product combined. This statement is about:

• Horizontal Merger

• Vertical Merger

This is the biggest M&A deal with a strategic investor in Vietnam's ... industry and is a double transaction. KEB Hana Bank invests capital to own 15% stake in BIDV with the holding period of at least 5 years. At the same time, BIDV receives ... from Hana Financial Group and KEB Hana Bank, including but not limited to 6 areas: strategic corporate governance; technology and digital banking; retail banking development; diversified asset portfolios; risk management; human resources training and development.

• banking - resource

• financial - resources

• banking - a long-term technical assistance

• financial - a long-term technical assistance

Which is not the difference between Merger and Acquisition?

• Merger: It is the mutual decision.

  Acquisition: It can be friendly takeover or hostile takeover.

• Merger: Less expensive.

  Acquisition: More expensive (higher legal cost).

• Merger: It is time-consuming and the company has to maintain so much legal issues.

  Acquisition: It is faster and easier transaction.

• Merger: Merging of two companies into one.

  Acquisition: Buying one company by another.

After a merger, the difference between the value of the combined entities and the sum of the values of the separate entities is:

• A pooling of interests

• Consolidation

• Goodwill

• Synergy

Which mathematical representation can be true for acquisitions?

• Company A + Company B = Company C

• Company A + Company B = Company A

• Company A - Company B = Company C

• None of these

Merger & Acquisition between an Indian and foreign company requires approval from the

• Government

• RBI (Reserve Bank of India)

• Government or RBI (Reserve Bank of India)

• None of these

A proposed acquisition may create synergy by .........(I) Increasing the market power of the combined firm. (II) Improving the distribution network of the acquiring firm. (III) Providing the combined firm with a strategic advantage. (IV) Reducing the utilization of the acquiring firm's assets.

• (I), (II) and (III)

• (I), (II) and (IV)

• (I), (III), (IV)

• All of these

What is the most likely reason that a firm (who is highly profitable) might consider acquiring a firm that has had large recent losses and will continue to have losses into the near future?

• Hubris

• White knight

• Tax-loss usage

• Increase assets