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Subject: The strategy of mergers rss

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Hayden Scott
Australia
Glen Iris
Victoria
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I've played this game once. I didn't really get what the strategy of mergers was.

Is it simply about wresting control of a company from a player at at time that they don't have sufficient cash to bid what it is worth?
 
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Darrell Hanning
United States
Jacksonville
Florida
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That's one use for it.

Another would be to merge two companies of your own, in order to free up a company "slot", so you can obtain a new company. This can be more advantageous than simply increasing your company slot capacity, because in the case of two production companies, it will allow you to get delivery done in one action where it previously took two actions. In the case of shipping lines, it can greatly enhance your shipping leverage, as your one shipping line can effectively have twice the reach of your two, former companies.

Mergers of production companies - one of yours and one of the same type owned by someone else - can also set up a monopoly, eliminating your concerns for cities being saturated with that good before you get a chance to deliver.

And a merger of your own company with someone else's - when done correctly, and with the aim of losing the bid - can give you some cash, and free up a slot of your own, for something else.

Formation of a siap faji company - if not done too late in the game (and particuarly if you have invested in expansion R&D) - can effectively replace rice and spice with a more profitable good that is usually in shortage.
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Ben Nevis
Netherlands
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Hostile mergers are another option. E.g. You own a big spices company and don't own any siap faji. You can decrease the competition by merging other spices companies with rice companies. You obviously have to place the first bid, but usually this will not be the winning bid (and if it is you got a siap faji for cheap). A second advantage is that you've increased the competition for the siap faji companies (under the assumption there were already siap faji companies).

Another example would be a defensive merger. E.g. You own a siap faji company. You can merge e.g. two spice companies (preferably the biggest companies) to prevent competition. Others will now need at least merger 3 to be able to merge this merged company into a siap faji.
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