BUSS 4 RESEARCH THEME - CHINA

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ADVANTAGES - MERGERS

ADVANTAGES - MERGERS

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INBEV BUYS FUJIAN SEDRIN BREWERY

  • 2006 Inbev, the world's largest beer brewery, acquired the whole of Fujian Sedrin, a major brewer in southeast China's coastal areas
  • Deal worth 5.886 billion Yuan ($755 million)
  • Inbev has become one of the largets brewers in China
  • Large market share from east to south China
  • Indicates a market strucutre of oligarchy competition
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HEINZ ACQUIRING FOOD STAR

  • Increased Heinz's annual sales in china to about $300 million
  • Enabled them to enter China's fast growing soy sauce market which is worth $2 billion
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Wal-mart

  • Wal-Mart is the second largest retailer in China
  • Considers China an area of future growth
  • Retails sales could reach $5 trillion by 2016
  • Growth in sales is expected to come from China's growing middle class
  • Also government policies that encourage domestic comsumption
  • Wal-Mart expanded its online business in China by purchasing 51% of Yihaodian an e-commerce business.
  • Wal-Mart plans to open 30 new stores in China in the next six months.
  • Long-term plans include the opening of 100 new stores over the next three years
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E-BAY AND TOM Online

  • Tom online gaining 51% of the deal and eBay the rest
  • Western media firms have cut their presence in China facing strong local competition
  • eBay can exploit this emerging market safely and still continue strong market share in the west
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