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New York Times reports that mergers are making a comeback

imageIn an article posted by the New York Times on February 15, 2013, the “Mega-Merger” is back, meaning that companies are joining forces (rather than one purchasing another) in order to do some sort of specific deal.  Examples they include are Warren Buffet and Brazilian investors purchase of Heinz for $23 billion and the merger between American Airlines and US Airways valued at $11 billion.

Mind-boggling numbers, I know. However the concept isn’t far fetched.  In the case of the American Airlines and US Airways deal, consider the potential; they will now be the largest airline in the world (big kudos!), the airlines, combined, have a larger customer base, greater reach around the world, they can potentially combine what they have learned in the marketplace and technologies to give them strategic advantage over other airlines, the people, the knowledge and the physical assets.  Of course, a merger like this doesn’t come without hiccups or potential issues: as with any business, failure rates can be quite high, but for those that are successful, it can be a bright new day.

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