Note 2-49
- Japanese version
- English version
(49) According to RECOF Corporation (2003), we have classified merger purposes into five - bailout, sectoral reorganization, enhancement of existing operations, mutual supplementation, and entry into new operations. Their definitions follow: 1) a bailout merger is designed to rescue a performance-deteriorating enterprise; 2) sectoral reorganization means that an enterprise's ranking within an industry rises to the top-three slot; 3) enhancement of existing operations is to integrate overlapping business resources to strengthen the competitiveness, 4) mutual supplementation is to integrate production and marketing bases at different locations, or core technology and business areas; and 5) entry into new operations means a continuous enterprise's entry into a new business area.