Acquisition of companies

For a growing company joint venture provides one means to grow in a different product line, sector or different geography. It combines the knowledge of joint venture partners in creating a new business opportunity. However, there are other growth ways open to business. In case a business has enough financial resources, it can buy another company altogether. This is called acquisition. Acquisition is the best way to change the growth pattern as it balances specialization and diversification. It is often the best way to bring new competence and new knowledge into business. Here are some recent examples

• Yahoo has bought Maktoob.com which is expected to help Yahoo to accelerate its strategy of expanding in high-growth emerging markets.
• Infosys is ready to buy companies in Europe, Latin America, the middle east, Japan and Australia. They are looking at companies serving sectors such as energy and health care
• ArcelorMittal and Tata Corus are other two examples