3.6 Mergers and AcquisitionsIn other words, when two companies come together to form a new company, it is called a merger; whereas, when one company buys the other company without any new company being created, it is called an acquisition. Technically, coalitions are formed between two companies of comparable size. The shares of the two companies are presented and the shares of the new companies are issued. For example, when Chrysler and Daimler-Benz merged, a new company called DaimlerChrysler was created. On the contrary, when a purchase takes place and the buyer “swallows” the target company which he no longer tolerates, we speak of an acquisition. How a deal is made and whether the purchase is hostile or accessible is what determines whether the deal is trusted as a coalition or as an acquisition. Coalitions can be horizontal, vertical, cogeneric or conglomerate in nature. Horizontal coalitions are formed between companies in the comparable industrial segment. A coalition in a comparable industry but disparate areas is called a vertical merger. The cogeneric coalition is a type of coalition in that the two merging firms are to some extent related to the firm's markets, design procedures, or required franchise technologies. When companies from disparate production sectors unite their procedures, it is called a conglomerate merger. The purchase can be pleasant or hostile. Mergers and acquisitions happen because in tough times, companies aspire to benefit from purchasing new technologies, downsizing, faster economies of scale, and better understanding of the market and better visibility of the industry. This is the ideal scenario for a coalition, but it is often the opposite case. Such a synergy may well be on the minds of executives at both companies, and may or may not create increased value.......middle of the paper industry......ve in 2008, it seemed that Ford manufacturers used Mazda as support. More importantly, the Mazda shares held by Ford were one of the insufficient things Ford could still sell, having mortgaged almost everything else to finance its restructuring plan. Ford reduced its 33.4 percent stake in Mazda to 13 percent in 2008 and further reduced it to a token 3 percent in 2010. Sumitomo group companies and complementary companies with which Mazda has close ties with the company were the buyers. Previously friendly relations between Ford and Mazda quickly turned hostile after the first segment of stock was turned into much-needed cash. If Ford executives wanted to attend a meeting at Mazda, the topics discussed would have to be carefully checked in advance and initialed in advance. Mazda, which carries out most of its creation in Japan, is the most affected by the very high yen..