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QuestionsCategory: Business QuadrantMerger and acquisition
Zhi Ming Cheah asked 2 years ago

General question: What to look for in merger and acquisition? eg. RHB and Tokio insurance arm going to merge to create the second largest general insurer in the country. Assuming i own either tokio or rhb stocks, how should i study whether the merger benefits or not? study the financial statement of both companies? 

1 Answers
Victor Chng answered 2 years ago

Hi Zhi Ming,
 
Yes you can study the financial of both companies and whether do they really get any benefit after the merger. The next thing is you also want to know if the merger valuation is favourable to the company.