Purpose of Amalgamation between Companies
The reasons for companies to merge, or amalgamate, include the following:
1. Cost Efficiency: By joining forces, companies can save money through shared resources, reduce duplication, and increase bargaining power with suppliers.
2. Market Growth: Merging enables access to new markets or strengthens positions in existing ones, leading to expanded customer reach and increased competitiveness.
3. Synergy Benefits: Combining complementary strengths and capabilities enhances overall performance and innovation, allowing the merged entity to achieve more together than they could separately.