Introduction

The financial environment in the UK is very competitive and impossible to predict. It usually is changing and developing. Merger and Buy as the action of corporate, refers to the aspects of the technique, finance and management of corporate that will help a company to develop rapidly. Combination and buy are producing enduring for over one hundred 12 months. Because of the recession, many companies in Europe put into practice merger and acquisition activities to deal with the economic crisis. From this report, take the merger of British Airways and Spain's national carrier Iberia as one example, the reasons of merger, the influences in the merger will be disabused.

Merger and Acquisition

A corporate merger is the creation of a sole firm for two firms and combine estate assets and financial obligations. Merger is commonly used if the scale of the two businesses are similar. That common takes place in substantial return sectors. A corporate buy is the purchase of the target firm by attaining company. Buy tends to take place when the range of the two companies are not similar, a lager company controls a smaller business, common in low development industries (Teriesen). Acquiring firm refers to the firm which will shares are continuing can be found, but it may be under a different name, and the target firm is referred to the company whose stocks are substituted by the obtaining company.

The merger of PURSE and Iberia

With the influence in the economic crisis, various industries have a negative result. T air transportation in Europe even offers a strong strike. The majority of airlines in European countries are facing a difficult trading condition, burning off a lot of money, specially in 2008 and 2009. There were many difficulties to be confronted for the most air travel companies, such as the economic slowdown, high gasoline prices, as well as the decline with the passenger quantities. The financial turndown of 2008 influenced the level of combination and acquisition activities in UK. But when the economy begins...

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