NextQ16

Nipro Electronics was the leading player in the electronics industry for the last fifteen years. A few years back, Mobe Electronics, a smaller company entered the market. Nipro Electronics started losing its market share to Mobe Electronics due to its innovative products. To maintain or develop a competitive edge, Nipro Electronics decided to acquire Mobe Electronics under friendly terms but that failed. Now it decided to buy majority shares of Mobe Electronics and hence initiated the acquisition. From the following, identify the type of acquisition which Nipro Electronics adopted after failing on friendly terms:

Mergers and AcquisitionsStudy Simplify SpecialPYQ1MCQAR
Question 15

Assertion (A): Backflip acquisition is a rare case of acquisition in which the purchasing company becomes a subsidiary of the purchased company. Reason (R): Both the companies approve of the acquisition but the entire process is done by force.

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