Merger Mania strikes back?

[mr3urious]

Recently there's been a ton of mergers this decade not seen since the 1990s, both completed and in progress: Kraft merging with Heinz (hasn't the former been bought out and reorganized enough already?), Anheuser Busch with Miller (both of which have already merged with other brewing companies and will now form this mutant Belgian-Brazilian-British-American thing), Pfizer with Allergan (some Irish pharmaceutical company that I didn't know about until now), and now DuPont with Dow Chemical (Go, you Callous Dowboys, go! ). Those are just a few examples.

I really don't like all these companies buying out their competition, especially if they're in good financial standing. That just enables them to slack off on quality rather than strive to be better (if they already haven't). Plus, it's obvious this is a cynical tax dodge, like with Pfizer moving its HQ to Ireland because of lower taxes.

What does anyone else think of all these mergers?

 

[D'Snowth]

Plus, it's obvious this is a cynical tax dodge, like with Pfizer moving its HQ to Ireland because of lower taxes.

Walgreen's recently did the same thing by moving their corporate headquarters to Switzerland. I'm pretty sure another U.S. company recently did something similar by moving their HQ to Canada.

 

[mr3urious]

Walgreen's recently did the same thing by moving their corporate headquarters to Switzerland. I'm pretty sure another U.S. company recently did something similar by moving their HQ to Canada.

Burger King is what you're thinking about. They merged with Tim Hortons to form Restaurant Brands International, which has its HQ in Canada but BK itself still resides in Florida.

http://www.rbi.com/

 

[D'Snowth]

Well I know McDonald's recently switched ketchup providers when they found out they were also supplying ketchup to BK; McDonald's seems to be getting pettier and pettier in their business practices anymore, but then again, I know they're under a lot of scrutiny anymore regarding the ingredients and contents in their food and that the company as a whole is pretty much tanking right now.

 

[Drtooth]

Here's one that ticked me the heck off.

Hasbro and Mattel are to merge apparently

Ugh. Obvious joke about Monopoly the game and monopoly what's going on here. Now, I do like Hasbro and have negative thoughts about Mattel. I have to say Mattel at least pulled their act together with Monster High, after struggling like crazy to stay relevant in a world full of fashion dolls with 'tude.

In a market where kids aren't really buying toys (except when they are), I see that there's a problem trying to keep their profits up. All Hasbro has to do is release a bunch of Star Wars toys and they make about as much as the last movie did. Mattel only really has a wrestling line and a DC super Heroes line at general retail (He-man stuff is sold strictly to and for collectors) for boys in the realm of action figures. They still have a strong Hot Wheels brand, and that's definately one over Hasbro there. Meanwhile Hasbro has been struggling to get a doll brand out there while Mattel has several established lines. That's why Equestria Girls exists, and frankly the jury is out on whether that was actually successful (I keep seeing them on clearance and at closeout stores).

That said, I don't think this is a good move for either company. I don't think Hasbro's going to turn Mattel around and I can only see the cheapness of Mattel quality negatively influencing Hasbro's line. Not to mention the whole huge job losses and destruction of competition the brands have. I mean, if it was either of the companies buying a smaller, less influential company, say Spinmasters or Thinkway, I wouldn't quite be as concerned. I just hope whatever still remaining anti-trust laws prevent this.

 

[mr3urious]

Yeah, I hope that merger attempt becomes as unsuccessful as it was 20 years ago.

 

[Drtooth]

And if it somehow is, they better the heck make He-Man Transformers!

 

[mr3urious]

Looks like Pfizer won't be merging with Allergan after all after Obama struck this obvious tax-dodging move down.

http://www.nytimes.com/2016/04/07/business/dealbook/pfizer-allergan-merger.html?_r=0