Cross-Border Mergers and Acquisitions .As shown in exhibit 19.2.MNEs undertake cross- border M&A for a variety of reasons. The drivers are strategic responses by MNEs to defend and enhance their global competitiveness by: - Gaining access to strategic proprietary assets Gaining market power and dominance Achieving synergies in local/global operations across different industries - Becoming larger,and then reaping the benefits of size in competition and negotiation Diversifying and spreading their risks wider -Exploiting financial opportunities they may possess Copyright 2007 Pearson Addison-Wesley.All rights reserved. 19-10Copyright © 2007 Pearson Addison-Wesley. All rights reserved. 19-10 Cross-Border Mergers and Acquisitions • As shown in exhibit 19.2, MNEs undertake cross- border M&A for a variety of reasons. • The drivers are strategic responses by MNEs to defend and enhance their global competitiveness by: – Gaining access to strategic proprietary assets – Gaining market power and dominance – Achieving synergies in local/global operations across different industries – Becoming larger, and then reaping the benefits of size in competition and negotiation – Diversifying and spreading their risks wider – Exploiting financial opportunities they may possess