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Japans Aeon enters Malaysia in a BIG way.

1)What type of acquisition thats been applied? Justify. The type of acquisition applied by Japan Aeon is cross-border acquisition, as it takes place in foreign countries. In this case, the location is in Malaysia, which Japans Aeon acquired Carrefours Malaysia, owned by the France. This acquisition is interesting as it involve three countries, France, Japan, and Malaysia. This acquisition doesnt involve the locally-listed entities Aeon Co (M) Bhd. (Aeon Malaysia) and Aeon Credit Service (M) Bhd. In conjunction, Japans Aeon acquired France-based Carrefour SA, its Malaysian business, for value of RM 990.19 million. Then, Carrefour Malaysia has been rebranded as Aeon BIG (M) Sdn. Bhd.

2)What are the expected sources of value creating? Discuss. This acquisition has creating numerous of values. One of the values are they motivate their employees. Japan Aeon maintain the motivation of the employees of Carrefour Malaysia by expressing their intention to retain all of the employees has the hypermarket been acquired. They also have maintained the relationships with Carrefour Malaysia suppliers. This has created the values of trustiness and loyalty towards making the hypermarket better and provides a happy environment in working together. Moreover, they will find more growth opportunities as Aeon Co is getting a bigger coverage. Plus, this synergies will increase the sales revenue enhancement as they acquired a bigger market and a transfer of information technology, distribution network and product development.

3)Discuss post-acquisition issues. Post-acquisition refers to the aspect of an organizational merger that involves combining the original socio-technical systems of the merging organizations into one such newly-combined system. Hence, there will be issues on it, such as in planning the acquisition. Late planning will cause important decision and performances remain deteriorates. It is suggested to start plan it early in acquisition to precisely do a research and gain as many information before doing any acquisition. Japans Aeon has start planning early; it can be proven when they didnt combine the Aeon Co (M) Bhd. (Aeon Malaysia) and Aeon Credit Service (M) Bhd. with Aeon BIG operations. Moreover, the leadership selection issue, which this issue can be problematic in their operational. Therefore, a fair selection need to be made and its best to take the top leaders of both companies to avoid different corporate cultural meshing and lack of an insiders knowledge to maintain a good partnership.

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