The Shuanghui Acquisition of Smithfield Foods (440 words)

  1. Home
  2. Homework Library
  3. Business
  4. Finance
  5. The Shuanghui Acquisition of Smithfield Foods (440 words)

Question

Discuss how the Shuanghui acquisition of Smithfield Foods sheds light on the strategic reasons for choosing mergers as a growth strategy, and the factors that are influential in implementing a merger. What can you learn from the two companies’ efforts to reach an agreement on the acquisition, about choosing merger candidates, and implementing M&A strategy?

Solution Preview

This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.

The Shuanghui acquisition of Smithfield Foods is being driven by several strategic considerations. From the viewpoint of Smithfield foods in the US, Smithfield is operating in a mature market with little growth opportunities. From the viewpoint of Shuanghui, the Chinese firm needs growth and is also facing reputation problems. Its reputation problems, notably poor quality meat that has caused health problems in the past, could be solved by the acquisition of a reputable US company. Given a merger between the US and Chinese firms in what appears to be a win-win deal, there are, still, several factors that are influential in implementing the merger. Importantly both firms must garner support from most of their respective constituents, particularly those with power. Depending on the constituent, support will only be offered if it is in their best interest....

This is only a preview of the solution. Please use the purchase button to see the entire solution

Related Homework Solutions

Finance Questions
Homework Solution
$25.00
Finance
Questions
Requirement
Business
Dividend
Stock
Price
Conclusion
Earnings
Goal
Annual
Return
Account
Finance Questions
Homework Solution
$45.00
Business
Finance
Accounting
Interest Rate
Market
Debt
Costs
CAPM Approach
Equity
Flotation Cost
Weighted Average
Estimation
Finance Questions
Homework Solution
$50.00
Finance
Questions
Business
Arbitrage
Percentage
Profit
Quote
Opportunity
Market
Costs
Equilibrium
Interest
Exchange
Rate
Finance Questions
Homework Solution
$8.00
Finance
Questions
Business
Adjustment
Arbitager
Equivalent
Amount
Interest
Exchange
Rate
Direct
Market
Euro
Get help from a qualified tutor
Live Chats