Mega Motors Ltd., a car manufacturing Company proposes to takeover AXL Automotives, a component manufacturer. As a professional expert, come out with the objects Mega Motors Ltd. may have conceived to attain by this take

Mega Motors Limited may have conceived all or any of the following objects of takeover as given below: To effect savings in overheads and other working expenses on the strength of combined resources; To achieve product development through acquiring firms with compatible products and technological/manufacturing competence, which can be sold to the acquirer's existing marketing areas, dealers and end users; To diversify through acquiring companies with new product lines as well as new market areas, as one of the entry strategies to reduce some of the risks inherent in stepping out of the acquirer's historical core competence; To improve productivity and profitability by joint efforts of technical and other personnel of both companies as a consequence of unified control; To create shareholder value and wealth by optimum utilisation of the resources of both companies; To achieve economies of scale by mass production at economical costs; To secure substantial facilities as available to a large company compared to smaller companies for raising additional capital, increasing market potential, expanding consumer base, buying raw materials at economical rates and for having own combined and improved research and development activities for continuous improvement of the products, so as to ensure a permanent market share in the industry; To achieve market development by acquiring one or more companies in new geographical territories or segments, in which the activities of acquirer are absent or do not have a strong presence.