Mergers
and acquisitions are one of the common ways of doing corporate structuring. A
company can gain growth and economic boost with such steps. The economic
benefits are many for a company, when it opts for merger or acquisition such as
risk diversification, economies of scale, enhancing competitive capabilities
etc. a company may need new technology or resources to operate and they can
quickly get it by doing mergers and acquisitions. The reason for Pfizer to
acquire Warner-Lambert was very clear that they wanted to grow as one of the
leading pharmaceutical companies in the world. Pharmacia Corporation was
dealing with some issues, so it was looking to get merged with any big giant of
the business, and this is the moment when Pfizer stepped in, and Pfizer
purchased Pharmacia Corporation in 2003. In the year 1990 the prices of the
stocks were near $2 which reaches up to $40 in the year 2000. The reason for
increasing in the corporation stock prices were the growth which the organization
was experiencing due to discovery and marketing of its various products. The
profitability of the corporation has also improved over the years and it can be
seen that organization is generating significant amount of profit.