The Empire Company Limited

In the Empire Company hold in Case, James Vaux, the associate director at Scotia Capital is the main finding maker. It is his job in September of 1998 to decide on a terms at which The Oshawa Group Limited will sell their company/ look at a takeover offer at. The Oshawa Group Limited (Oshawa) is a nutrient retail, wholesale, and distri preciselyion firm. The Empire Company wants to expand beyond their Atlantic Canada root however, at that place be a few catches. The Wolfe family owns 100% of the voting shargons of the company, and non only know the treasure of their company and expect to receive at least that much, but also a premium on crystallise of that.Greg Rudka is the Managing Director at Scotia Capital he has extensive background in the history of the grocery industry and was the one who noticed this opportunity as well as the person who assigned James Vaux to his assignment of the value of Oshawa. ISSUES There argon two main issues at hand. First, Vaux needs to dese x a value for both classes of shares that Empire would be willing to carry to the Wolfe family and Oshawa equity holders to acquire a position in the Oshawa Company without starting time a bidding war.The second issue is that Vaux needs to find a way to finance the deal. There are a few diminished issues in this case, starting with competition. The grocery industry is very competitive. There are only a few large firms involved in the industry. Of course, there are mom and pop stores all over North America, but they only make enough to live themselves and they are not speech in the same profits as the major set up, so they are not legitimate threats to Empire. Next, the Oshawa Companys entire voting shares are owned by the Wolfe family as mentioned above.This will add to the level of trouble in the purchase or acquisition of Oshawa. Finally, the last issue is that in the grocery industry, it is cheaper to acquire a competitors company and chains than it is to open a new store. I n other words, horizontal acquisitions were the elementary source of growth on the revenue side for the grocery business. hoi polloi dont like change and because of this, creating or changing the realize of their local grocery store may upset or knap their previous shopping experiences.