Mergers and acquisition

Outline the economic arguments for and against British Home Stores (BHS) taking over Arcadia? British Home Stores has grown from a single store in South London to a multinational retail company with a major presence both in the UK and later on in overseas clothing markets. In 1986 they merged with Habitat/Mothercare to form Storehouse plc. Then in May 2000, Philip Green bought Bhs from the Storehouse Group. Green has been successful so far and has …

…economic multiplier effect. Fiona Walsh, Evening Standard29 August 2002 A combination of Bhs and Arcadia would catapult Green's retail empire into pole position in the womenswear market, taking its share to 12.9%, ahead of Marks & Spencer's 12.1%. Top Shop, in particular, has had a very good run. In the fickle world of fashion, Top Shop's buyers have been consistently getting the right products into its stores - and at the right price The telegraph Kate Rankine (Filed: 30/08/2002)