Defensive Acquisition

Defensive Acquisition
The act of firms acquiring other firms and assets as a defense against market downturns or possible takeovers. A defensive acquisition contrasts with the normal impetus for an acquisition, which is usually increased market share or revenue.

A company will sometimes engage in a defensive acquisition strategy by purchasing smaller firms that are in the same business. By acquiring these firms, the company protects itself from takeovers from other companies, which, as a result of antitrust laws, may not be able to merge with the enlarged company without creating a monopoly.

If a North American car company acquired an SUV company as a result of the projected rise in demand for SUVs, this would be an example of a defensive strategy through the purchase of assets.


Investment dictionary. . 2012.

Игры ⚽ Поможем написать курсовую

Look at other dictionaries:

  • Reconnaissance, Surveillance, and Target Acquisition (United States) — Reconnaissance, Surveillance, and Target Acquisition (RSTA), is a type of unit in the United States Army. Overview and makeupRSTA units are small reconnaissance units based on cavalry squadrons, and act both at the squadron (battalion) level as a …   Wikipedia

  • Organisation défensive du Royaume-Uni pendant la Seconde Guerre mondiale — Gros plan sur l embrasure d un emplacement de tir abrité. L organisation défensive du Royaume Uni durant la Seconde Guerre mondiale a entraîné une mobilisation des militaires et des civils sur une très grande échelle en réponse à la menace d… …   Wikipédia en Français

  • American Stores — Infobox Company company name = American Stores Company, Inc. company company type = Public area served = United States fate = Acquired by Albertsons foundation = 1917 defunct = 1999 location = Original company in Philadelphia, Pennsylvania; Later …   Wikipedia

  • Europe, history of — Introduction       history of European peoples and cultures from prehistoric times to the present. Europe is a more ambiguous term than most geographic expressions. Its etymology is doubtful, as is the physical extent of the area it designates.… …   Universalium

  • japan — japanner, n. /jeuh pan /, n., adj., v., japanned, japanning. n. 1. any of various hard, durable, black varnishes, originally from Japan, for coating wood, metal, or other surfaces. 2. work varnished and figured in the Japanese manner. 3. Japans,… …   Universalium

  • Japan — /jeuh pan /, n. 1. a constitutional monarchy on a chain of islands off the E coast of Asia: main islands, Hokkaido, Honshu, Kyushu, and Shikoku. 125,716,637; 141,529 sq. mi. (366,560 sq. km). Cap.: Tokyo. Japanese, Nihon, Nippon. 2. Sea of, the… …   Universalium

  • Italy — /it l ee/, n. a republic in S Europe, comprising a peninsula S of the Alps, and Sicily, Sardinia, Elba, and other smaller islands: a kingdom 1870 1946. 57,534,088; 116,294 sq. mi. (301,200 sq. km). Cap.: Rome. Italian, Italia. * * * Italy… …   Universalium

  • Banco de Oro-Equitable PCI Bank merger — The Banco de Oro Equitable PCI Bank merger (2004 December 27, 2006) is a plan by the SM Group of Companies and Banco de Oro Universal Bank, the fifth largest bank in the Philippines, to merge with Equitable PCI Bank, the third largest bank… …   Wikipedia

  • Economic Affairs — ▪ 2006 Introduction In 2005 rising U.S. deficits, tight monetary policies, and higher oil prices triggered by hurricane damage in the Gulf of Mexico were moderating influences on the world economy and on U.S. stock markets, but some other… …   Universalium

  • Brevity code — Contents 1 American/NATO codes 1.1 A 1.2 B 1.3 C …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”