Strategic reasons for a horizontal acquisition (same industry/level of value chain):
A Reduction of risk by building a larger portfolio – broader product / customer base in the same industry can reduce business risk → strategic.
C To achieve economies of scale – classic horizontal motive (sharing overheads, volume discounts, etc.).
E Reduction of competition – by acquiring a rival, the combined firm increases market power.
B is a financial motive (undervalued target), and D is a vertical integration motive.
Answer: A, C, E
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