Synergy is often cited as a reason that companies decide to engage in business c

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Synergy is often cited as a reason that companies decide to engage in business c

Synergy is often cited as a reason that companies decide to engage in business combinations through stock acquisition. The economy of scale could be vertical (between supplier and customer companies), horizontal (between competitors) and conglomerate (between companies in unrelated industries). Please find the news report of a recent stock acquisition of a public company, Why, in your opinion, do the companies decide to merge together? What are the possible economic benefits?

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