QUESTION $1$

$(50$ marks$)$

What do we mean by the term mergers and acquisitions $($or $"$M&A$")?$ The term is in common parlours and has been for $20$ or $30$ years, and you hear this term in the business news almost daily. But what does this term actually refer to$?$ Essentially, M&A is the combination of companies or business assets. And when you put two of these two things together, you get either a merger or an acquisition.

With reference to the above statement, answer the following questions:

Fully explain the two concepts $($mergers and acquisitions$)$ and provide relevant example of each.

Identify any existing South African company that have implemented one of the above activities and a brief history about the company.

Give $5$ reasons for the M&A activity, the advantages, disadvantages the above company experienced due to the above activity.