I.

Introduction

Jollibee Foods Corporation also called JFC, and popularly known as Jollibee, is a
Filipino multinational chain of fast food restaurants headquartered in Pasig,
Philippines. JFC is the owner of the popular fast food brand Jollibee, dubbed as Asia's
answer to McDonald's in the fast food burger business.

Jollibee is the largest fast food chain in the Philippines, operating a nationwide
network of over 750 stores. A dominant market leader in the Philippines, Jollibee
enjoys the lions share of the local market that is more than all the other
multinational brands combined. The company has also embarked on an aggressive
international expansion plan in the USA, Vietnam, Hong Kong, Saudi Arabia, Qatar
and Brunei, firmly establishing itself as a growing international QSR player.

Jollibee was founded by Tony Tan and his family with its humble beginnings as an Ice
Cream Parlor which later grew into an emerging global brand.At the heart of its
success is a family-oriented approach to personnel management, making Jollibee
one of the most admired employers in the region.

Aside from promoting a family oriented work environment, the brands values also
reflect on their advertising and marketing. Jollibee knows their target audience very
well: the traditional family and all communication materials focus on the importance
of family values, making Jollibee the number one family fast food chain in the
Philippines and a growing international QSR player.

Mang Inasal

It all started with a Vision. Edgar Injap Sia, at the age of twenty six, grabbed the
opportunity to lease a 250 square meter space at the Robinsons Mall Carpark-Iloilo
in December 2003.

It was there that Mang Inasal, Hiligaynon for Mr. Barbeque, was born.

Early on, he learned the importance of following your instincts, taking risks,
strategizing, negotiating, and motivating yourself and your people. He also knew
that the Filipino barbeque quick service restaurant category still had the potential
for growth. He started a business that had the potential for nationwide expansion.
With the support of his family, he embarked on a journey that changed his life
forever.

Mang Inasals authentic fusion of traditional Filipino cuisine with the dine-in concept.

Famous for its native-style and nuot-sarap Chicken Inasal with its pioneering
unlimited rice, Mang Inasal quickly won the hearts of its customers with its
distinctively Pinoy stamp-grilling and special marinade made out of local secret
spices.
The

restaurant was an instant success,

opening close to thirty branches in just three years. By 2005, confident of the
stability and brand recall of the business, he opened Mang Inasal for franchising,
concentrating his efforts in Visayas and Mindanao where Inasal is most popular.
Franchise offers for Luzon soon followed.

II.

In October 2010, 70 percent of Mang Inasal's stakes at the stock exchange were
acquired by Jollibee Foods Corporation (JFC), for 3 billion ($68.8 million).

On April 22, 2016 Jollibee Foods Corp. (JFC), the Filipino-owned food giant, now owns
100 percent of Mang Inasal Philippines Inc. after acquiring the remaining 30 percent
stake held by the Sia family for P2 billion.

The move is in line with the shareholders agreement entered into between JFC and
the Sia family. JFC said in a disclosure to the Philippine Stock Exchange (PSE).

With the 100 percent acquisition, JFC representatives will now completely comprise
the board of directors of Mang Inasal.

JFC, however, said there would be no changes in the business conduct and direction
of Mang Insasal as a result of the transaction.

At the same time, the JFC Group of Companies headed by founder Tony Tan Caktiong
will continue its business relationship with businessman Edgar Sia through
DoubleDragon Properties Corp.

The JFC brands will continue their store network expansion with CityMalls, which is
controlled by DoubleDragon. DoubleDragon will also continue to develop the Jollibee
Tower office building, the units of which will be respectively owned by JFC and
DoubleDragon, JFC said in its disclosure.

JFC acquired the 70 percent stake of barbecue fast-food chain operator Mang Inasal
in 2010 as part of continuing efforts to beef up its business portfolio.

Mang Inasal caught the attention of JFC due to its fast growing business. To date, it
now has 458 branches nationwide.

III.

IV.Reasons

Since Jollibee bought 70% of Mang Inasal from the owner Edgar Injap Sia II, I
guess no one knows the real reason why Mr. Sia decided to sold part of Mang Inasal
to Mr. Caktiong, the owner of Jollibee. But the fact that Mr. Sia didnt sold the entire
company and kept 30% of it, we can conclude that the owner still wants to retain
the company. My conclusion is, in business, there are many competitors and the big
boys always wins. Since Jollibee and Mang Inasal has almost the same Star
product, and that is cooked chicken, although the method of cooking is not close to
each other, they are direct competitors. One is fried while the other one is grilled
but they are both serving the fast food industry.

So in order for Mang Inasal to boost its potential, instead of competing directly with
the giant, he should join them. There is a saying, if you cant beat them, join them.
And the same thing with Jollibee, since Mang Inasal is a threat, even though it is just
a fledgling little chick, Jollibee became interested in buying the company. Most
businesses do that to demolish the competition whether they will buy their
competitor to integrate to their existing business or just to make them disappear
into oblivion.

Homegrown fast-food giant Jollibee Foods Corp. has acquired the remaining 30-
percent stake held by the group of businessman Edgar Sia II in grilled chicken
restraurant chain Mang Inasal Philipines Inc. for about P2 billion.

This allows Jollibee to take 100-percent control of Mang Inasal while Sias group
completes its exit in line with the terms of the shareholders agreement signed in
2010.

There will be no changes in the business conduct and direction of Mang Inasal
resulting from this acquisition except that the board of directors of Mang Inasal
Philippines Inc. will henceforth be composed completely of representatives of
Jollibee Foods Corp., the company said.

Jollibee, now one of the worlds biggest fast-food companies by market

capitalization, will pay for the remaining 30-percent stake in cash. The block
consisted of 3,750 shares sold for P533,333 each by Sia, his holding firm Injap
Investments Inc. and his brother Ferdinand Sia.

As of end-March, Mang Inasal had 458 restaurants across the country.

The Jollibee group added that it would continue its strong business relationship with
Sias group, primarily through DoubleDragon Properties Corp.

DoubleDragon, which is led by Sia and Jollibee founder Tony Tan Caktiong, is
building the Jollibee Tower office building. Office space in this tower will be owned
by Jollibee and DoubleDragon.

V.

The merger applied in Jollibee and Mang Inasal is horizontal merger.It is a business
consolidation that occurs between firms that operate in the same space, as
competition tends to be higher and the synergies and potential gains in market
share are much greater for merging firms in such an industry. This type of merger
occurs frequently because of larger companies attempting to create more efficient
economies of scale.

A horizontal merger of two companies already excelling in the industry may be a

better investment than putting a lot of time and resources into developing the
products or services separately. A horizontal merger can increase a companys
revenue by offering an additional range of products to existing customers. The
business may be able to sell to different geographical territories if one of the pre-
merger companies has distribution facilities or customers in areas not covered by
the other company. A horizontal merger also helps reduce the threat of competition
in the marketplace. In addition, the newly created company may have greater
resources and market share than its competitors, letting the business exercise
greater control over pricing.

VI.Financial Impact

Mergers and acquisitions are aimed at improving profits and productivity of a

company. Simultaneously, the objective is also to reduce expenses of the firm.
However, mergers and acquisitions are not always successful. At times, the main
goal for which the process has taken place loses focus. The success of mergers,
acquisitions or takeovers is determined by a number of factors. Those mergers and
acquisitions, which are resisted not only affects the entire work force in that
organization but also harm the credibility of the company.

End of March 31,2016 the profits of Jollibee rises by 17.1% and their sales up 14.8%
in the first quarter.

VII.Conclusion
Jollibee is a well-known Filipino food restaurant that has to be on top of the chart
food line and proliferate profits.Although at some point, things shifted slowly out of
Jollibees control, competition became thougher and people preferred to dine at
other fast food restaurants.

To strengthen their market in the fast food industry, Jollibee started to redirect their
focus.Instead of focusing on how to satisfy their customers more and enhancing
their products, they increased their profits amply by acquiring other food
companies.

In October 2010 Jollibee merged to Mang Inasal.Acquiring 70% of Mang Inasals

authentic fusion of traditional Filipino cuisine with the dine-in concept.Because
Jollibee believes that it is a big threat to them and there is a saying that if you cant
beat them,join them.And on April 2016 Jollibee takes the full control by buying the
remaining for 2 billion pesos.