Question

Discuss the differences in merger practices between Malaysian companies and companies in other countries. What changes are occurring in international merger activity, particularly in US, Europe and Japan?

Answer 1

Differences in merger practices between Malaysian companies and companies in other country are as follows-

A. In Malaysia there is a complex set of rules and regulations and government is not flexible so mergers and acquisitions are not that common whereas in other countries there are a whole lot number of mergers and acquisition.

B. The total number of merger and acquisition in Malaysia is very low in comparison to merger and acquisition in other countries of the world.

C. foreign direct investment in case of merger and acquisition is not promoted by the government and they are trying to infuse various restrictive regulations whereas in other countries they are promoting mergers and acquisition from other countries.

D. Transparency in books of accounts of merging into Malaysian companies are also subject to criticisms in Malaysian country and other developed nations are very transparent and rules and regulations are adequately guiding this mergers and acquisitions in other country.

changes which are occurring in international merger activities which are particularly in United States, Europe and Japan would be that-

A. There is a flexibility in rules and regulation and a higher amount of foreign mergers and acquisitions of developing Nations companies

B. they are requiring a large number of subsidiaries and target companies from other countries as they want to gain a cost advantage and diversification in operation.

C . Rules and Regulations for These mergers and acquisitions are subsequently flexible in these countries and there is the promotion of such practices