The reason for immediate objective of an acquisition is self - evidently growth and expansion of the acquirer's assets, sales and market share.
For example, the aim of integration of Salora and Luxor by Nokia was to arrange production in a more optimal way and to utilise more effectively all the possibilities of synergy, including integrating production plants in a total product planning and production system
BMW thought about acquiring Rover as it was to small to survive on its own. However, a more fundamental objective may be the enhancement of shareholders' wealth through acquisitions aimed at accessing or creating sustainable competitive advantage for acquirer. Such an advantage may stem from economies of scale, market power or access to unique strengths, which the acquired company may possess. For example, BMW through acquisition of Rover was able to offer a rage of cars in every category.
Basically, a company decide to acquire another company in order to gain competitive advantage for the firm that could raise profits and speed the entrance to new markets.
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