Mergers & acquisitions: More strategic, less egotistic

The strategy adopted during mergers-and-acquisitions of the pulp and paper industry is discussed. The pulp and paper sectors have increased concentration towards more strategic and less egoistic market. Prices being paid for most attractive acquisitions have been bid up because of competitive situations. An efficient approach to acquisition is to look at not spending all the cash at the acquisition stage, but instead look to purchase cheap and then plan to invest further in the asset to get cost reductions.