To gain market share - market penetration (ansoff matrix)
- Helps gain brand awareness/reputation
- Attract/ gian customers - acquire customers from the other business
- Economies of scale - purchasing, technical, financial, managerial
Eg. Morrisons takeover of Safeway was to gain market share.
To protect themselves from external circumstances
Spread the risk - market development (ansoff matrix)
Eg Walmart's takeover of Asda