Accounting Practitioner



Accounting Practitioner

Part A: Consolidation

The company which has been chosen to see the factors which caused them for such a consolidation is m.Net Corporation (leading company of Australia which offers full service mobile marketing Solutions to Companies) and Mercury Mobility Pty Ltd (leader in offering personalization of mobile, entertainment and technology across world) which is now known as Mnet Group. This consolidation took place in as of Oct 30th 2009 in order to capture larger share of North American market. Hence, this made them a leading mobile marketing and content company of Australia.

Overview of the companies

Mnet is the Consolidation of Mercury mobility and m.Net corporation which were founded in same year 2011. Both companies comprise of experience and skilled executives & employees and both companies' employees have proficiency in delivery successful solution for mobiles. These two companies had strong and long standing in the Australian market (PC world, 2009).

Mercury mobility and m.Net corporation were leaders in the mobile content and its marketing along with the services of professionals services to the industries. As both companies were leaders and expertise in their field, the consolidation offers them capabilities of comprehensiveness and deepness around the mobile industry for their local customer as well as their international customers.

Local Australian mobile companies have been assisted by both the companies which have shaped and lead the way by offering them an effective solution and making string customer relationship not only n Australia but also in other countries. These two companies had an ability to attract more new customers and had also provided their existing customers with innovative mobile and their solutions. The technical capability of Mercury Mobility and m.Net Corporation has been matched by the outstanding and excellent customer service and imminent. This was supported by staff development and through full-time in-house research.

According to theory, consolidations are transactions used by companies in order to achieve the strategic and financial goals. Now, the goals of these two companies were to capture larger share of North American market. Furthermore, the consequences can be a combination of two businesses into one organization in such a way as to achieve new goals, jointly participating in the market (fusion) or acquire such number of shares (shares) of one company by another, which gives the possibility to control the whole, resulting bought the company is in some way incorporated into the structure of the acquirer (acquisition) (Mnet Group Limited Annual Report, 2011).

Here, Mercury will acquire the entire shares of m.Net trading in stock exchanges, after the completion of the consolidation, the half of the company new capital issued which will held by the current m.Net shareholders while remaining will be of the current shareholders of Mercury. Moreover, the participants of the Consolidation the company may be quite different in terms of management style, organizational culture or value systems; hence the success of this operation depends on how effectively they are able to integrate with each other. The agreement was signed by the ...