In: Economics
Antitrust and Mergers Find a current example of a pending merger between two U.S. companies that is being evaluated by the federal government to see if it should be allow to move forward or stopped. Current means it should be less than six months old. The merger could have been allowed, disallowed, or still be pending. You should include in your discussion the companies involved, the industry, the government's position and some of the pros and cons of the merger from your opinion. Be sure to include references as to the source of your information. EXAMPLE MUST BE WITHIN THE LAST 6 MONTHS
Uber Technologies Inc a week ago said it would procure Postmates Inc for $2.65 billion to extend its food conveyance piece of the overall industry and essentially increment the matter of providing ordinary products when the coronavirus has pounded its center ride-hailing administration.
The all-stock arrangement, despite everything subject to administrative endorsement, would give Uber a generally 30% portion of the U.S. food conveyance advertise, trailing just adversary DoorDash, which orders some 45%.
Uber said the two organizations' sheets have affirmed the arrangement, for which Uber presently hopes to give somewhere in the range of 84 million portions of normal stock. Uber offered a premium of about 10% on Postmates' last valuation of $2.4 billion. Its offers were up 5% at $32.24.
Uber Chief Executive Dara Khosrowshahi told investigators the tie-up would permit Uber Eats to separate itself by conveying café food, yet everything from goods to individual consideration and style things.
Uber has propelled an alternative to send bundles by means of its U.S. ride-hail drivers during the pandemic and collaborated with supermarkets in a few nations. The securing permits it to venture into Postmates' current system in 4,200 U.S. urban communities.
Khosrowshahi said he anticipates that the arrangement should make gainfulness for the Uber's Eats unit, just as some $200 million in cost sparing cooperative energies in around two years and extra effectiveness increases through Uber's more astute directing innovation.
The tie-up comes following a month of furious merger talks in the business as a great many Americans were marooned at home by the coronavirus emergency. Organizations have customarily attempted to pick up piece of the overall industry with expensive advancements and driver motivating forces.
Uber's unique intend to procure U.S. food conveyance rival GrubHub, which orders a 23% piece of the pie, wavered over administrative and different concerns. GrubHub was grabbed up by Takeaway.com NV on June 11.
When Uber introduced its proposal in June, Postmates was preparing for a first sale of stock for July.
Postmates board, be that as it may, was worried that being a littler player in food conveyance and the monetary downturn could cast a shadow over the new stock's drawn out presentation.
The board rather chose to choose sureness by consenting to a tie-up with the all around promoted Uber.
Mail Online. 2020. Uber Buys Food Delivery App Postmates In $2.65 BILLION. [online] Available at: <https://www.dailymail.co.uk/news/article-8493243/Uber-agrees-deal-buy-food-delivery-app-Postmates-Bloomberg.html> [Accessed 12 July 2020].