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 ?
Dani Ceballos and Nicolas Pepe are exciting and the two defensive acquisitions should go some way to solving the issues at the back.
The Monaco left-back's arrival in a reported PS49.4million deal takes Pep Guardiola's summer spending past PS200m, with defensive acquisitions alone totalling PS156million as Mendy joins Real Madrid's Danilo and Tottenham's Kyle Walker as back-four recruits, in addition to new goalkeeper Ederson, bought from Benfica.
The Monaco left-back's arrival in a reported PS49.4million deal takes Pep Guardiola's summer spending past PS200m, with defensive acquisitions alone totalling PS156m as Mendy joins Real Madrid's Danilo and Tottenham's Kyle Walker as back-four recruits, in addition to new goalkeeper Ederson, bought from Benfica.
"Companies may also arrange defensive acquisitions to guard against being bought themselves, but this is less common than in the biopharma arena."
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.
The retail landscape is littered with Chapter 7s and 11s, missteps, overexpansions, defensive acquisitions, and an inability to meet competitive conditions profitably.
After shoring up their back line with defensive acquisitions in January, including Rosenborg stalwart Stefan Strandberg, they pushed Zenit close in a 1-0 defeat in their first game of 2019.