The Analysis Of Mergers And Acquisitions Based On The Example Of A Chosen Company In Eastern Croatia

External growth of a company is one of fundamental aims and strategies of modern business. Different forms of business combinations, such as acquisition, contribute to better financial and business performance. Eastern Croatia, like other parts of Croatia, has in the last decade been facing economic crisis. Economic inefficiency leads to more complex ways of doing business and demands innovative financial techniques and instruments. The aim of this paper is to identify the importance of mergers and acquisitions in improving business and financial performance of the acquiring and target companies based on the example of the Agrokor Group’s acquisition of Belje PLC (together with PIK Vrbovec meet industry). As a result of this acquisition, new products are developed, new markets are entered, new suppliers and distributors are reached and the companies are becoming more competitive in the market. Various quantitative and qualitative methods were used. Both scientific and technical literature and financial reports were analysed. Data synthesis has emphasized the importance of acquisition. By comparing statistical and financial reports before and after the acquisition conclusions on the effects of acquisition were reached. The results show that this acquisition was risky; nevertheless, it was a good business call, good investment and a great step forward for the Agrokor Group. However, the positive effects of the acquisition are a result of changes in management and organization, the use of new technology and knowledge, whereby the key role was played by a change in the market strategy and conducting a new business philosophy. It is predicted that the two corporations will become recognisable force in the Croatian market and will become a serious competitor. Expanding the Agrokor Group into eastern Croatia by acquisitions has proved to be a great external business growth strategy also for entering foreign markets.