THE INTERNATIONALIZATION OF AKIJ GROUP: SHINING THE SPOTLIGHT ON THE FIRST-EVER CROSS-BORDER MERGER AND ACQUISITION (M&A) FROM BANGLADESH

The purpose of the case is to investigate the detailed internationalization process of the Akij Group in their acquisition of two Malaysian companies. [...]this case details some of the preparatory phases of the acquisition process including the motivations behind the acquisition, the acquisition pr...

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Bibliographic Details
Published in:Independent business review 2019-01, Vol.12, p.38-47
Main Authors: Mallick, S M Yusuf, Mahbub, Tareq, Haque, Hasan Mahmood Ul
Format: Article
Language:English
Subjects:
Acquisitions & mergers
Awards & honors
Central banks
Diversification
Efficiency
Flooring
Foreign investment
Globalization
Strategic business units
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Summary:The purpose of the case is to investigate the detailed internationalization process of the Akij Group in their acquisition of two Malaysian companies. [...]this case details some of the preparatory phases of the acquisition process including the motivations behind the acquisition, the acquisition process itself from deal initiation through deal execution and financing, some of the challenges, operational risks, and benefits from this acquisition. [...]taking advantage of the specialized skills or the target's management, eliminating idle resources, sharing expensive technologies and promoting products that are complementary to each other, thereby reducing transaction costs and re-allocating existing expenses (Wolfe et al., 2011). [...]through the merger the management efficiency of one company is transferred to the other company (i.e., the inefficient firm resulting in both social and private gain as it improves the performances of both firms and also utilizing the resources of the economy more optimally). [...]it helps for sharing managerial resources in the sense that if one firm has excess managerial capacity, this could be distributed to the other firm that lacks such competencies. [...]with the integration of the two entities both firms (i.e., the acquirer and the acquired) can identify each other's strengths and weaknesses and complement each other by transferring skills and competencies from one company to the other and thereby, improving the overall operational efficiency and bolstering the competitive advantage of the combined entity. [...]it helps for the involvement in effective management, improvements in production techniques and sharing complementary resources between the two companies (Bradley et al., 1983).
ISSN:1996-3572
2521-2990