Mgt 510 Module 13: Discussion Select A Saudi Arabian Company

Mergers/Acquisitions and AlliancesA merger is the integration of two previously separate organizations into one new one, while an acquisition is the takeover and eventual integration of one organization into another. A strategic alliance refers to a close working relationship between organizations, circumventing the legal combination of the organizations (Psychology, 2020). Mergers, acquisitions, and alliances are entrenched in the repertoire of modern-day business executives. Acquisitions and mergers can speed up business strategy by quickly helping an organization expand its service or product mix, locate to a new foreign or regional market, eliminate rivals, or capture new customers (Psychology, 2020). Today’s turbulent and intense transformations involving technological advances means that mergers assist organizations share resources, leverage competencies, create opportunities, and gain flexibility that otherwise would not be possible.In Saudi Arabia, the Saudi Company Regulations provides for mergers in which one or more firms are absorbed by a current one (Basmah & Khan, 2014). Acquisitions are also influenced by purchasing shares in an organization, subject to international investment regulations. A Saudi Arabian organization that recently merged with other organizations is the National Commercial Bank (NCB). Considered as the Kingdom’s biggest lender, the Bank agreed to merge with its rival, Samba Financial Group