MERGERS AND TAKEOVERS: RYANAIR TAKEOVER OF BUZZ AIRWAYS

1). Motives for mergers/takeovers and the form of takeover of Buzz

Nearly all organisations, at one time or another, have the business objective to grow. The aspirations of growth are fuelled by a plethora of reasons, and although there are a number of motives, the business will value some more highly than others, but will ultimately be affected by all of them.
Recently, a takeover has occurred at Ryanair, with the acquisition of their rival airline Buzz. For Ryanair, this growth will spell an increase in productive capacity, more capital/assets, will allow production to increase, and enables the firm to achieve it’s long-term strategic objectives.
(http://news.bbc.co.uk/1/hi/business/2714373.stm).
Ryanair’s motives and desires of growth would’ve changed significantly since last year as their largest other competitor ‘Easyjet’, bought out BA’s sister company ‘Go!’ intensifying the budget airline market competition. (http://travel.guardian...