Mergers and acquisitions sound the same but they are quite different. When the transfer of ownership occurs and a firm is bought by another company then that is called a acquisition. And when a company is consolidated with another that is called a merger. Chap 10 discussed the benefits and drawbacks of such a transaction and what is the motivation behind the deals.
On October 29, 2008, Delta Airlines merged with Northwest airlines, eliminating an industry competitor and expanding their presence worldwide. The former CEO of Delta airlines Gerald Grinstein, called this transaction "anti-competitive" and that it would "threaten the future stability of our nation's transportation industry". With the economy in a downturn and oil prices increasing combining resources would give the company capital needed for growth.
http://money.cnn.com/2008/02/20/news/companies/delta_northwest_analysis.fortune/index.htm
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