When two healthy companies merged each other

I found interesting discussion in the class today. Yuwen Chiu mentioned an evidence in the class that two companies can merge each other even though they do not have any problems in their companies. For example, Taipei- Fubon Bank- a bank company in Taiwan which has good financial condition- was merging with Fubon Bank in Hongkong. Fubon Bank in Hongkong is also a good company with good financial condition. They merged because the Taipei- Fubon Bank wanted to expand their markets in Hongkong, but they did not have any knowledge about Hongkong conditions and people. So, they tried to work together by doing merger with the bank in Hongkong in order to get more technology, knowledge, and the market in another country as well. Vise versa, the Hongkong- Fubon Bank also needeed the same thing. The company also wanted to expand market in Taiwan, but they did not have any knowledge about market in Taiwan and people as well.

From the case above, we can know that merger can be occured between two companies even they do not have any problems or we can say that they are health companies. The main reason is because they want to expand more their business in another country. They want to get the market there in order to get competitive advantage in market. Of course, by combining each other, the companies become very huge and can get a lot of advantages each other. They also can learn and get technology and knowledge from others.