Defensive Acquisition

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Dictionary Says

Definition of 'Defensive Acquisition'

The act of firms acquiring other firms and assets as a defense against market downturns or possible takeovers. A defensive acquisition contrasts with the normal impetus for an acquisition, which is usually increased market share or revenue.
Investopedia Says

Investopedia explains 'Defensive Acquisition'

A company will sometimes engage in a defensive acquisition strategy by purchasing smaller firms that are in the same business. By acquiring these firms, the company protects itself from takeovers from other companies, which, as a result of antitrust laws, may not be able to merge with the enlarged company without creating a monopoly. 

If a North American car company acquired an SUV company as a result of the projected rise in demand for SUVs, this would be an example of a defensive strategy through the purchase of assets. 

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'Defensive Acquisition'

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    ... and other investors, shareholder desire for an acquisition and moves to block boards
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    ... A Defensive Tech Play. ... On the commercial side, the growing use of wireless broadband
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  • Pinpoint Takeovers First

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    ... In some cases, acquisitions can be designed for defensive purposes such as protecting ...
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  • Corporate Bond Market Opens Up

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    ... The company will use the proceeds to pay for its acquisition of the diagnostic ... bonds
    in Bond Basics: Different Types Of Bonds.) Not Just Defensive Sectors Even ...

  • 3 Healthy Healthcare Stocks

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    ... though healthcare is recognized as one of the more defensive market sectors. ... Last
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  • Say "Hola" To These Five Mexican ADRs

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    ... and the company is expanding its reach throughout Latin America via acquisition. ...
    Femsa still represents the Mexican equivalent of a defensive stock and should ...

  • What is the Pac-Man defense?

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    ... The defensive strategy gets it name from the popular arcade video game of the ... In
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  • Pepsico Says Sharp Cost Increases Loom

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    ... had one of those reports clogged with too many explanations which sound defensive. ...
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  • Four Companies Shifting Into Overdrive

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    ... hit or approach new 52-week lows recently, not all have gone on the defensive. ... This
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  • Clorox Looking Squeaky Clean

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    ... the addition of Burt's Bees sales from its recent acquisition, sales increased a ...
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