Mergers and Acquisitions Case Study Essay Example | Topics and Well Written Essays - 2250 words

Mergers and Acquisitions Case Study - Essay Example The acquisition may generate monopoly gains whereby the purchasing a rival firm might minimize competition and enhance industry profits (Faulkner, Teerikangas and Joseph 2012, p.502). On August 17, 2010, SABMiller declared its intention to take its bid for Foster’s Group Ltd directly to the company’s shareholders. On December 16, 2011, SABMiller, one of leading brewers globally with more than 200 beer brands and over 70,000 workers in more than 75 countries, acquired Carlton and United Breweries (CUB) representing the Australian beverage business of Foster’s Group Limited. The court approval of the transaction preceded the entity's shareholders meeting, whereby the deal received the green light by 99.1% of current shareholders. The completion of the transaction scheme of arrangement can be regarded as a notable success given that SABMiller’s earlier proposal (June 2011) to acquire Foster’s Group for $4.90 per share became hostile in August 2011. In the approved transaction, Foster’s Group’s ordinary shareholders gained total cash consideration of A$5.40 per share, which represented an enterprise value of about Australia $11.7billion. In addition, to completing the acquisition of the firm, SABMiller also entered into a strategic alliance with Castle in Africa. Some of the means of gaining control of a public company entail a public offer (takeover bid) detailing gaining control of a listed public company. Recommended takeover can also be undertaken by: scheme and launching a dual listed company structure (Ahlstrom and Bruton 2010, p.190). A scheme demands a proposal to be tabled by the target to its shareholder and approved by the court. Court’s approval is critical as it... This paper stresses that the acquisition was not difficult to integrate, and it is improbable that SABMiller would dispose the acquired firm. The paper has established that the acquisition heralded benefits to the SABMiller’s shareholders given that the acquisition aligned with the firm’s strategic priorities, and handed the firm with a leading position in the stable and profitable Australia beer industry. SABMiller expects Foster’s to become a critical part of its business via the application of its commercial capabilities and global scale, as well as by building on the initiatives put in place by Foster’s management. The acquisition of Foster’s is anticipated to be EPS enhancing for SABMiller within the first full year of ownership, and herald economic returns that may exceed the project WACC by year 5. These results align with takeovers being highly motivated by maximization of shareholder wealth. Public mergers and acquisition within Australia a re guided by the overriding market activity and requires the regulation of recommended and hostile bids. The regulation encompasses undertaking of due diligence; procedures for announcing and launching an offer. This report makes a conclusion that the acquisition of Foster’s Group Limited by SABMiller appears to be propelled by the objective of leveraging the synergies within the acquisition process. In order to keep up with growth and changes within the globalized economy, any entity has to pursue the path of growth that contains diverse challenges and issues and overcome them to become a success story. SABMiller, through its indirectly wholly-owned Australian subsidiary, acquisition of Foster’s can be regarded as a case mirroring a company following the path of success.

Taxation Assignment Example | Topics and Well Written Essays - 750 words

Taxation - Assignment Example 129). The anti-abuse rule introduced by HMRC strikes down the tax avoidance schemes, regardless of whether they are technically sound. It is possible to implement the law correctly if the avoidance scheme is abusive. HMRC could view the situation as a violation in case the gain was not disclosed. One of the professional requirements of a member would be to ensure that he does not assist a client to arrange or commit an offence since it is unlawful (Chartered Institute of Taxation, 2011, p. 20). From an ethical viewpoint, the most appropriate thing to do would be to advise Henry to avoid such a consideration since it is not legal. It would be vital to give Henry appropriate advice since he continues to act for him as a client. After the expiry of an initial period of an official enquiry, the Tax Management Act (section 29) provided a mechanism that would assist in the assessment of an individual’s income tax. The mechanism also assists in the assessment of capital gains in the following four years. Such assessments might take place regardless of whether they are in support or whether they are the consequences of an enquiry. The power to make the assessment is triggered when an HMRC officer makes a discovery that complies with the rules specified in Section 29. In Henry’s case, the discovery relates to the development of an insufficiency in an assessment. The self-assessment process provides HMRC with a straightforward system that assists in the mitigation of uncertainty. HMRC has the power to correct the glaring omissions, which is one of the ways through which the revenue can require additional tax liabilities. Conversely, the corrections can impose excessive reliefs under section 29. If the tax agent fails to provide information requested by HMRC, the body will investigate the agency to determine the possibility of dishonest conduct. In the case of a failure to supply information required, HMRC will charge the agent with civil penalties. Subsequently,