| dc.description.abstract | Prior to 2010, as a result of a sluggish global economy, the amalgamation and merger
procedure in South Africa was active although it was at an all-time low.1 However, in
2010, there was an increase in amalgamation and merger activity in South Africa
which was more pronounced in cross-border deals in South Africa and general
corporate restructurings.2 As a result of this, as well as the developed infrastructure
that was placed in preparation for the FIFA 2010 World Cup, the country attracted
more and more foreign markets to invest in South Africa which contributed to the
increasing rate of amalgamations and mergers.3
Nevertheless, the global recession has also contributed to the increase in
amalgamations and merger activity as many companies in South Africa have merged
to buck the negative trend that most companies find themselves in, increase their
revenue and work with each other to advance the position of the company on a par
with those of its competitors. However, there are various other reasons as to why
companies consolidate their assets and liabilities. Recently, Tiso Blackstar, a merged
investment holding company, consolidated their assets, liabilities and skills between
Blackstar Plc and Tiso Investment Holdings to expand its operations and to seek
investment opportunities in Africa which is boasting with economic growth.4 The
company was of the opinion that the merger would not only enhance its scale and
profitability, but it would also put the group on a new growth path.5 There are many
benefits in which companies may reap from amalgamations and mergers, but
elucidating them is beyond the scope of this research. | |
