- 20 Marks
MCB-F&I – OCT 2022 – L4 – Q2 – Reasons for Divestment and Takeover Failures
Explain reasons for Shell Petroleum's divestment to Vivo Energy, including general, specific factors, and motives for divestment, plus causes of takeover failures.
Question
Shell Petroleum PLC divested its distribution outlets to Vivo Energy to market its brands.
Required:
(a) In your opinion, what are the reasons that drove Shell Petroleum to divest their holdings
to Vivo Energy
(i) General factors (10 marks)
(ii) Specific factors (5 marks)
(iii) Why a firm may choose to divest part of its business.
(10 marks)
(b) What are the main causes of “failure” of takeovers? (5 marks)
(Total: 30 marks)
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