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There are many synergies that are behind mergers in this industry:

1. Extensive reach
2. Greater market share
3. Financial synergies - one firm could make use of the free cash flows of the other firm and thereby the excess capital can be used for expansion into non-core areas of the business. Internal financing is obviously better than external financing.
4. There could be something that safeway has expertise in that morrisons could utilise and vice versa.
5. To remain competitive in the market.

These are some of the off- the- cuff reasons that are behind most mergers. Extensive research is required to establish the precise reasons. hope this has provided you with a clearer view.

2007-03-04 08:43:29 · answer #1 · answered by r_varun007 1 · 0 0

Theres some sort of governing body that chose morrisons as the ones allowed to buy safeway (tesco, asda and sainsburys bid for the supermarket chain). If any of the other stores had bought it, they would have seen to be monopolising the industry and it was fairer for morrisons to own it as they are the smaller of the 4 companies.

2007-03-04 16:30:41 · answer #2 · answered by Rach, xx 2 · 1 1

They are the same company. Morrisons brought Safeway & they have the strategy to enter the S.England market. Hence now they can just convert Safeway & hey presto Morrisons is in S.England.

2007-03-04 16:30:07 · answer #3 · answered by A . Z . 3 · 1 0

Corporate Greed or
Money

You pays your money and you takes your choice

2007-03-04 16:29:24 · answer #4 · answered by Anonymous · 1 0

Reasons?

Money!

Thats it.
Just Money, the more they make, the better they like it!

2007-03-04 16:24:29 · answer #5 · answered by Anonymous · 1 0

FINANCIAL MANOEUVRING .
( retail / wholesale wars )

By combining forces , they are trying to out smart Tesco.
Who has the most profitable,
retail and supermarket trade in the UK just now .

MONEY ! MONEY ! MONEY ! MONEY ! MONEY ! MONEY ! MONEY ! MONEY ! MONEY ! MONEY ! MONEY ! MONEY !

watch this space ~~~~~>they are after our money!!!

>^,,^<

2007-03-04 16:41:03 · answer #6 · answered by sweet-cookie 6 · 0 0

To make money.

2007-03-04 16:33:33 · answer #7 · answered by Afi 7 · 0 0

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