Mergers and Acquisition

Outline the economic arguments for and against British Home Stores (BHS) taking over Arcadia?
British Home Stores has grown from a single store in South London to a multinational retail company with a major presence both in the UK and later on in overseas clothing markets. In 1986 they merged with Habitat/Mothercare to form Storehouse plc. Then in May 2000, Philip Green bought Bhs from the Storehouse Group. Green has been successful so far and has managed to turn the business around and increased the value of the business from £200m to an estimated £750m and raise operating profits by 257 percent. After a failed attempt to takeover Marks & Spencer earlier this year Green continued his ambition to expand his empire by moving in to takeover the Arcadia group which has a large portfolio of brands including Topman/Topshop, Miss Selfridge, Burton, Dorothy Perkins, Wallis and Evans. The deal would complete a horizontal takeover and, through external growth, create the biggest fashion retail group in the U.K.
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