defensive acquisition

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Defensive Acquisition

An acquisition that a company makes in order to keep from being taken over. For example, if Company A may acquire a much smaller Company B, which will make Company A so large that any takeover will result in the acquirer running afoul of antitrust laws. A defensive acquisition most commonly applies to acquiring a company, but it may also involve acquiring a particular product that will make the company more difficult to take over. It is an example of an antitakeover measure.

defensive acquisition

A firm or an asset purchased by a potential target of a takeover in order to make itself less desirable to raiders. For example, a target company might purchase another firm engaged in the same business as the raider in order to create an antitrust problem for the raider. See also raider, target company.
References in periodicals archive ?
Many of the CEOs involved in this year's surveys believe this recent wave of M&A will lead to defensive acquisitions by other 3PLs.
Companies may also arrange defensive acquisitions to guard against being bought themselves, but this is less common than in the biopharma arena.
Gilson Kleina's team, who play at the Estadio do Pacaembu while their home venue is being modernised, have spent lavishly in the winter with Wendel among a string of defensive acquisitions and ex-Porto forward Kleber arriving to pep up the attack.
However, that is likely to change over the coming days as Birmingham look to add Johnson to a basket of defensive acquisitions that already includes Stephen Carr, Scott Dann and Giovanny Espinoza, not forgetting the opportunity to look at trialist Bobo Balde when they resume for pre-season next month.