The reasoning X & Z will use and present to support their planned merger is the newly created firm is able to take advantage of economies of scale.
The term "mergers and acquisitions" (M&A) relates to the amalgamation of businesses or their major financial assets via company financial transactions. A business can necessarily buy out now and absorb another business, combine with it to form a new business, take over some or all of its key assets, launch a tender offer for its shares, or launch a takeover attempt. They are also all merger and acquisition activities.
The divisions of financial firms which participate in such activity are referred to by the name merger and acquisition as well.
The complete question is here:
Company X and company Z are planning to merge their business into one and are seeking regulatory approval. What is the most likely reasoning X & Z will use and present to support their planned merger?
(choices)
a. Consumers will purchase the same goods of both companies in the same way as before.
b. The newly created firm will benefit consumers by continuing to operate as separate companies.
c. The newly created firm is able to take advantage of economies of scale.
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