Two reasons for mergers and acquisitions are

Two reasons for mergers and acquisitions are Correct Answer to provide improved capacity utilization and to gain new technology

Two reasons for mergers and acquisitions are to provide improved capacity utilization and to gain new technology. Engaging in the promotional activities, introducing new ways by which product value can be increased, which in turn increases the production rate which leads to maximum capacity utilization.

Related Questions

In the question below, are given a statement followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the following suggested courses of actions logically follow(s) for pursuing. Statement: The Department of Telecommunications (DoT) is set to conduct ‘special audits’ of mobile phone operators from fiscal 2011-12 onwards to check for under-reporting of revenue that might account for a sharp downturn in license fees and spectrum usage charges (SUC). Annual license fees and SUC paid to the government are calculated based on a telco’s revenue. The audit, to be resumed after a gap of three years, comes when license fee and SUC due to the government fell in 2017 by more than 23% on the year and is expected to fall this year too. This is due to the brutal price war, which expedited a bloody consolidation that saw a spate of exits and mergers & acquisitions that dented telecom revenues.  Courses of action: I. All telecom companies will be audited soon and DoT is preparing for this. This will be the third audit and notices will go out soon. II. DoT proposes to conduct audit/special audit of Aircel for the period of seven years for financial years 2011-2012 to 2017-2018. III. Operators fear the new round of audit could lead to a new dues being demanded from the already stressed sector, sparking more litigation and be a drag on time and resources. 
Mergers and acquisitions, strategic alliances and joint Ventures fall under expansion through . . . . . . . .
Assertion (A): In the past few years there is a lot of mergers and acquisitions going on in Indian Industrial Sector.
Reason (R): There has been considerable dilution in MRTP Act provisions.
Select the correct answer:
Two statements are followed by three Conclusions I, II and III. You have to consider the statements to be true, even if they seem to be at variance from commonly known facts. You are to decide which of the given conclusions can definitely be drawn from the given statements and indicate your answer accordingly. Statements: I. One of the biggest acquisitions in the Indian patient-care industry, the Rs. 4,500-crore Fortis-IHH deal could intensify competitive intensity in the space, with declines Friday in the shares of Apollo Hospitals, Healthcare Global, Max India and Narayana Hrudayalaya pointing to potential challenges for the incumbents.  II. After the completion of the deal, the IHH-Fortis group of hospitals will be among the biggest in the country, competing directly with some of the large listed hospital chains. The BSE Healthcare index also fell Friday, with hospital stocks at the vanguard of the downward journey.  Conclusions: I. Hospitals will be challenged as they will have to face someone like IHH, which has deep pockets and will be going into markets where they are present. II. Shares of Apollo, currently the largest hospital chain in India, fell more than 2%, closing at Rs. 975, followed by Max India that lost by 2.40%. III. Both are direct competitors of Fortis, Narayana and Healthcare Global also fell after the buyout announcement.
In India, mergers and acquisition of firms are regulated by: