Mergers & acquisitions

1. Mergers & acquisitions English Department, Huzhou Teachers College

2. Objectives • 1)Enable students to realize the main tasks of this unit. • 2)Enable students to talk about mergers and acquisitions. • 3)Pay pivotal attention to technical terms • 4)To practice reading for specific information. • 5)To practice a collaborative speaking task. • 6)To review aspects of cohesion.

3. Tasks and schemes 1)Reading comprehension 2) Speaking 3) Language/Grammar

4. Merger： • the combination of two or more commercial companies • Acquisition： • the act of contracting or assuming or acquiring possession of something • Mergers & acquisitions • 公司并购 • Business file • 财经档案/企业档案

5. Difficult points of the reading on page 22 lBMW’s takeover of the Rover Group injected much needed investment into the struggling UK car manufacturer whilst extending BMW’s product range. 1)BMW: Bavarian Motor Works 宝马汽车公司 (德国) 2)Rover Group 路华集团（陆虎汽车集团，英国汽车制造商） 3)Inject: throw into or put into / pour into

6. lWhen the UK pharmaceutical firm Zeneca merged with Swedish drug company Astra, the new company started life with strong combined R&D capabilities, by the world’s best selling drug Losec. 1)pharmaceutical firm 制药公司，也常表示为：pharmaceuticals 或pharmaceuticals company或pharmaceutical company 2)start life: to call forth all one’s vigor / to become active焕发了活力 3)the world’s best selling drug Losec 世界上最畅销的药品“洛赛克”（a kind of medicine to cure ulcer溃疡.）

7. lIt may mean projected efficiency are not delivered. （It may represent that the expected benefits and returns can not be fulfilled.） lA further destabilizing effect is the prospect of redundancies. 更进一步的破坏性影响是可能出现的裁员现象。 1)Redundancy: of a worker or group of workers not needed because there is not enough work

8. lShareholders are lured by such short term savings. 股东可能会被这种短期资本积累所吸引。 1)Lure: to attract or tempt, esp. away from what one should do into something one should not 引诱；诱惑

9. lBenefits: 1)Can increase efficiency 2)Can remain competitive in a global market 3)Can enter new markets 4)Can diversify and extend their product range 5)Can acquire product patents 6)Can make short-term savings and attract shareholders

10. Possible Reasons for M&As（advantages）: 1)To increase efficiency and reduce costs 2)To expand company 3)To diversify and extend their product range 4)To remain competitive in a global market 5)To enter new market 6)To buy market share 7)To buy brands or patents 8)To buy a distribution channel 9)To complement a product portfolio

11. lProblems: 1)Merging of different cultures can have a destabilizing effect on the workforce 2)Projected efficiencies may not be delivered 3)There may be redundancies as a result of restructuring 4)There is no evidence that long-term value is added to company performance

12. lThe reason behind each merger / acquisition mentioned in the text: 1)Deutsche Bank: to buy market share 2)Siemens: to enter a new market 3)Vodafone: to expand the company / enter new market 4)Microsoft: to diversify / buy distribution channels 5)BMW/Rover: to extend BMW’s product portfolio / to raise capital for Rover 6)Zeneca: to expand / buy patents • Portfolio: A group of investments.一组投资

13. Read the article again and choose one letter for the correct answer. 1)B 2)C 3)D 4)A 5)C 6)A

14. Language/Grammar (linking/cohesive devices) • Linking words and phrases: • Text ordering: there are several factors……, another factor….., a further…. (try your best to develop a command of phrases which organize and link the text as a whole)

15. Sequence:firstly(2), when(6) • Example: for instance(5), such as (9) • Addition: also(4-5), and (6) • Contrast: whilst(2), however(6), despite(7), although(9) • Purpose: in order to(2)

16. Reference words: pronouns (subject, object, possessive) including (they, it, its, their) 1)This: this can have a destabilizing effect …(8) 2)These: Despite all these potential benefits … (7) 3)Such: such alliances…(8) such short term savings … (9) 4)The: There are several factors behind the increase …(9) The deal created … (3)

17. Lexical repetition / substitution (a text can be united by the repetition of the same word, namely lexical repetition. Alternatively, a different word or phrase can be substituted to refer to the same thing.) Examples of substitution are: • Vodafone acquired its US Counterpart Airtouch …, the deal created Vodafone AirTouch. (3) • BMW’s takeover of the Rover Group injected much needed investment into the struggling UK car manufacturer. (6)

18. Relative clauses • … joined together in deals that totaled $2.25 trillion … (1) • … to gain access to France’s railway business, which is dominated by Alstom … (9) • … the record performance of stock markets, which has enabled companies … (3) • AT&T, which recently bought Media One … (9)

19. Discuss the benefitsthat would result from company’s merger and acquisition • Merge with or acquire a foreign company of the same industry. • Reduce cost • Buy market share • Raise share value • Buy a distribution channel • Complement a product portfolio • For the further growth of the company