AmBev has recently bought 36% voting shares of Quilmes Industrial for US$600mil. This indicates AmBev increasing in size through external growth, this is where two businesses join together to form a larger business. External growth can occur mainly in two ways, as a merger which is when two businesses agree to join together or as a takeover which is when one business buys another business. Acquisitions are takeover and it occurs when one business buys a part of another. Therefore, AmBev's operation represents an acquisition. According to the deal, AmBev may ask for the merge of both companies and take over Quilmes in the year 2009.
All businesses have objectives. These are the goals of the businesses, what the business wants to achieve. The objectives of business organizations will be shaped by various stakeholders which are various groups of people having an interest in business. AmBev bought a part of Quinsa, and this one agreed because of the reason that there were certain aims to be achieved, which could include profit maximization, sales revenue maximization, to achieve or maintain market share, develop a range of products, expanding the products to new areas, gaining economies of scale, reducing costs, having a better financial status, creating competitor advantages, selling high quality products to its consumers.
Achieving market share. Market share is the proportion of total sales in a particular market for which one or more firms are responsible. It is usually expressed as a percentage. AmBev is the HYPERLINK "javascript:pop_content86('http://www.corporate-ir.net/ireye/popup_content.zhtml?win=86')" Brazilian beverage market leader with a 70% beer market share and is the second largest soft drinks company with a 17% market share. Quilmes is the Argentinean beverage market leader with a 66% market share. Brahma, which is owned by AmBev, follows with 16%. This indicates that AmBev and Quinsa will turn to have a 82% of market share in the Argentinean beverage market.
