Economic
• Interest rate o Companies are looking for financing to bolster their growth, and they are looking for raising capital at a lower interest rate. They are also looking into the BRICS countries for the same, as it also provides them an opportunity
• Level of inflation o Increase in inflation leads to the increase in the prices of the raw …show more content…
Heinz, Oscar, Kraft, Mayer & Philadelphia and other such well-known brands will lead to creating synergies and scope for innovation. The complementary nature of the brands will also strengthen the brands and create a stronger hold in the market. The merger would mean they will have 8 $1 + billion brands and 5 $1 billion-$500 million brands. This will provide them a strong platform to make the company more relevant and would provide it an unprecedented opportunity to grow further.
• Overseas Footprint
The merger will allow Kraft, one of the biggest players in the North American market to have market presence outside North America. This will lead them to serve and become leading global brand. And it will allow Heinz, to become stronger in North America, where the merger will lead them to become the third largest purely in terms of sales volume, only behind PepsiCo. and Nestle. Hence the merger would create in capturing new markets for both the players, creating a greater synergy.
• Synergy: Growth and