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- Market extension mergers occur when companies that sell the same products but compete in different markets merge to gain access to a larger client base123. Here are some examples:
- Walt Disney and Pixar: In 2006, Disney acquired Pixar to create a larger organization for animated movies and TV shows45.
- Exxon and Mobil: Their 1999 merger created ExxonMobil, the largest publicly traded oil company45.
- Procter & Gamble and Gillette: In 2005, they merged to extend their market reach5.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Market Extension This type of merger occurs between companies that sell the same products but compete in different markets. Companies that engage in a market extension merger seek to gain access to a bigger market and, thus, a bigger client base. For instance, to extend their markets, Eagle Bancshares and RBC Centura merged in 2002.www.investopedia.com/terms/m/merger.aspMarket extension M&A strategy is when two entities that produce the same type of product to different markets come together under one roof. Example of a market extension M&A strategy: When the Royal Bank of Canada, RBC Centura, Inc., acquired American-based Eagle Bancshares, Inc., resulting in RBC gaining access to over $1.1 billion in assets.bridgepointconsulting.com/insights/types-mergers-…The goal of a market-extension merger is to gain access to a larger market and thus a bigger client/customer base. For example, RBC Centura’s merger with Eagle Bancshares Inc. in 2002 was a market-extension merger that helped RBC with its growing operations in the North American market.corporatefinanceinstitute.com/resources/valuation/t…Examples of Successful Market Extension Mergers
- The Walt Disney Company and Pixar In 2006, The Walt Disney Company and Pixar merged to create a larger organization that could produce a more comprehensive range of animated movies and TV shows. ...
brandessenceresearch.com/blog/market-extension …Some of the most prominent examples of market extension mergers include:
- 1. Walt Disney and Pixar (2006) One of the most successful market extension mergers in recent history is the acquisition of Pixar Animation Studios by The Walt Disney Company in 2006. ...
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