In a merger of two listed companies in the same industry, CIMA F3 highlights several typical post-merger outcomes:
A. Increase in customer base – The combined entity now serves the customers of both legacy firms, usually increasing total customer reach and market share.
C. Decrease in employee motivation due to internal changes – Mergers often create uncertainty, restructuring, cultural clashes and role changes, which can reduce morale and motivation, at least in the short term.
D. Changes to supplier relationships owing to internal changes – A larger merged company often renegotiates supply contracts, consolidates suppliers or changes volumes, so relationships and terms are likely to change.
E. Cost savings from synergistic benefits and economies of scale – This is one of the main motives for mergers: eliminating duplication, spreading fixed costs, consolidating operations, and gaining purchasing power.
Option B (competition authorities step in to stop a potential price monopoly) is not something that will necessarily or likely occur after the merger; it may happen in some extreme cases and typically occurs before completion, so it’s not treated as a standard outcome.
So the most appropriate outcomes are: A, C, D and E.
