43-653: Bestway Group Limited is a British conglomerate founded by Sir Anwar Pervez in 1976. The group operates in the United Kingdom and Pakistan , and is currently based in London . The group originally began as Bestway Wholesale . The group would form property firm Palmbest in 1990, and Bestway Cement in 1995. In 2002, the group acquired a minority share in United Bank in Pakistan, later becoming its majority shareholder. In 2015,
86-429: A market inefficiency , which undervalues the true strength of these stocks. In her 1999 book No Logo , Naomi Klein provides several examples of mergers and acquisitions between media companies designed to create conglomerates to create synergy between them: A relatively new development, Internet conglomerates, such as Alphabet , Google's parent company belong to the modern media conglomerate group and play
129-871: A parent company that owns and controls many subsidiaries , which are legally independent but financially and strategically dependent on the parent company. Conglomerates are often large and multinational corporations that have a global presence and a diversified portfolio of products and services. Conglomerates can be formed by merger and acquisitions , spin-offs , or joint ventures . Conglomerates are common in many countries and sectors, such as media , banking , energy , mining , manufacturing , retail , defense , and transportation . This type of organization aims to achieve economies of scale , market power, risk diversification , and financial synergy. However, they also face challenges such as complexity, bureaucracy , agency problems, and regulation . The popularity of conglomerates has varied over time and across regions. In
172-633: A 3.45% stake in the UK's second largest supermarket chain, Sainsbury's . A week later, in February 2023, it was announced the stake had been increased to 4.47%. In October 2023, this was further increased to 4.99%. Bestway Group, the largest shareholder in the Pakistani bank United Bank Limited "UBL", submitted an "Indicative Offer" in September 2023 to acquire its 55% shareholding in its United Kingdom joint venture with
215-630: A cost of US$ 180.0 million. To augment its presence in the cement industry, Bestway bid for 85.29% equity of Mustehkam Cement Limited. The Company's bid of approximately US$ 70 million was accepted in September 2005. The plant started production in December 2005 just one month after acquisition. In 2005, the Group acquired its wholesale rival, Batley's plc. In 2010 it purchased the Scottish cash and carry company Bellevue and Martex. In July 2014 Bestway Group acquired
258-480: A disorienting and demoralizing experience for executives at acquired companies—those who were not immediately laid off found themselves at the mercy of the conglomerate's executives in some other distant city. Most conglomerates' headquarters were located on the West Coast or East Coast , while many of their acquisitions were located in the country's interior. Many interior cities were devastated by repeatedly losing
301-540: A focus in Asia.) In Japan, a different model of conglomerate, the keiretsu , evolved. Whereas the Western model of conglomerate consists of a single corporation with multiple subsidiaries controlled by that corporation, the companies in a keiretsu are linked by interlocking shareholdings and a central role of a bank. Mitsui , Mitsubishi , Sumitomo are some of Japan's best-known keiretsu, reaching from automobile manufacturing to
344-521: A major role within various industries, such as brand management . In most cases, Internet conglomerates consist of corporations that own several medium-sized online or hybrid online-offline projects. In many cases, newly joined corporations get higher returns on investment , access to business contacts, and better rates on loans from various banks. Similar to other industries many companies can be termed as conglomerates. Pakistan Centre for Philanthropy The Pakistan Centre for Philanthropy (PCP)
387-625: A small slice of many companies in a fund rather than owning shares in a conglomerate. Another example of a successful conglomerate is Warren Buffett 's Berkshire Hathaway , a holding company which used surplus capital from its insurance subsidiaries to invest in businesses across a variety of industries. The end of the First World War caused a brief economic crisis in Weimar Germany , permitting entrepreneurs to buy businesses at rock-bottom prices. The most successful, Hugo Stinnes , established
430-530: Is an independent not-for-profit support organisation based in Islamabad, Pakistan . Founded in 2001, PCP is promoting indigenous philanthropy for social development across the country, and is probably the first philanthropy-support organisation in the Islamic world. PCP functions as the umbrella organisation of not-for-profit organisations. It conducts performance evaluation of not-for-profit organisations on behalf
473-472: Is currently China's largest civilian-run conglomerate by revenue. In South Korea , the chaebol is a type of conglomerate owned and operated by a family. A chaebol is also inheritable, as most of the current presidents of chaebols succeeded their fathers or grandfathers. Some of the largest and most well-known Korean chaebols are Samsung , LG , Hyundai Kia and SK . In India, family-owned enterprises became some of Asia's largest conglomerates, such as
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#1732851653415516-611: Is one of the oldest academic institutions of South Asia was founded in 1864 by Dr Charles W Forman, a Presbyterian missionary from the United States of America. In May 2015 the charitable trust gave £1 million towards graduate scholarships at Oxford University . The gift created an endowment that enables two graduate students from Pakistan per year to study at Oxford, in perpetuity, through the Oxford-Sir Anwar Pervez Graduate Scholarships. In October 2016,
559-555: The Aditya Birla Group , Tata Group , Emami , Kirloskar Group , Larsen & Toubro , Mahindra Group , Bajaj Group , ITC Limited , Essar Group , Reliance Industries , Adani Group and the Bharti Enterprises . In Brazil the most important conglomerates are J&F Investimentos , Odebrecht , Itaúsa , Camargo Corrêa , Votorantim Group , Andrade Gutierrez , and Queiroz Galvão. In New Zealand, Fletcher Challenge
602-460: The Co-operative Group 's stores branded as The Co-operative Pharmacy , the UK's third largest pharmacy, for £620 million. They have since been re-branded as Well Pharmacy . At the time of acquisition, the pharmacy business was expected to increase the group's annual turnover to over £3 billion and the group's global workforce would increase to 33,600 people, with over 11,900 people employed in
645-737: The Federal Board of Revenue (FBR) of the Government of Pakistan . It is a designated certification agency, which is insofar important, as not-for-profit organisations working in the country are required to seek approval of the Commissioner of Inland Revenue for their official recognition. Only with the approval these organisations can avail other tax benefits including tax credit and exemption. By early 2021, PCP had certified more than 1200 organisations across Pakistan. PCP promotes altruistic efforts of national and international philanthropists, including
688-697: The National Bank of Pakistan , United National Bank Limited "UNBL UK". This was approved by the Board of Directors of UBL but is conditional on the approval of the State Bank of Pakistan . Bestway Group comprises the following investments: In 1987 the Bestway Group established the Bestway Foundation. It is a charitable trust of the Bestway Group that works exclusively in the health and education sectors. Every year
731-641: The United States , conglomerates became popular in the 1960s as a form of economic bubble driven by low interest rates and leveraged buyouts. However, many of them collapsed or were broken up in the 1980s due to poor performance, accounting scandals, and antitrust regulation. In contrast, conglomerates have remained prevalent in Asia, especially in China , Japan , South Korea , and India . In mainland China , many state-affiliated enterprises have gone through high value mergers and acquisitions , resulting in some of
774-516: The highest value business transactions of all time. These conglomerates have strong ties with the government and preferential policies and access to capital. During the 1960s, the United States was caught up in a "conglomerate fad " which turned out to be a form of an economic bubble . Due to a combination of low interest rates and a repeating bear-bull market , conglomerates were able to buy smaller companies in leveraged buyouts (sometimes at temporarily deflated values). Famous examples from
817-440: The 1960s include Gulf and Western Industries , Ling-Temco-Vought , ITT Corporation , Litton Industries , Textron , and Teledyne . The trick was to look for acquisition targets with solid earnings and much lower price–earnings ratios than the acquirer. The conglomerate would make a tender offer to the target's shareholders at a princely premium to the target's current stock price. Upon obtaining shareholder approval,
860-618: The 1980s, General Electric also moved into financing and financial services , which in 2005 accounted for about 45% of the company's net earnings. GE formerly owned a minority interest in NBCUniversal , which owns the NBC television network and several other cable networks . United Technologies was also a successful conglomerate until it was dismantled in the late 2010s. With the spread of mutual funds (especially index funds since 1976), investors could more easily obtain diversification by owning
903-574: The Bestway Foundation and University of Bradford signed a five-year agreement that committed £250,000 each to jointly fund five annual scholarships to support postgraduate students applying from Pakistan. In May 2014 Bestway Cement Limited was ranked 10th out of 478 PLCs by volume of donations in Pakistan according to Pakistan Centre for Philanthropy (PCP) Philanthropy Survey 2012. In October 2014 Bestway Foundation (Rs. 50 Million) and United Bank Limited (Rs. 100 Million) donated Rs. 150 Million to Foreman Christian College Lahore, Pakistan. FC College which
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#1732851653415946-475: The Bestway Foundation and University of Kent signed a five-year agreement that committed £250,000 each to jointly fund five annual scholarships to support postgraduate students applying from Pakistan. In February 2017 the UK's third largest retail pharmacist, Well Pharmacy , launched its charity partnership with the Stroke Association. Well seeks to raise £250,000 under Know Your Blood Pressure campaign for
989-542: The Group contributes approximately 2.5% of its profit to the Foundation, which helps support charities and contributes to help the local community. In the last decade Bestway Foundation has invested in 35 inner city schools in as part of the Specialist Schools & Academies Program. In 1997 Bestway Foundation Pakistan was established and Choudrey was appointed Chairman of Bestway Foundation Pakistan. In February 2013,
1032-500: The Group's charitable trust donated £100,000 to the Great Ormond Street Children's Hospital. In Pakistan the Group has donated £900,000 towards the construction of dams and large scale water Reservoirs. The company has donated £14.8 million to the charitable trust in the UK and provided over US$ 9.0 million to health, education and humanitarian causes in Pakistan. In November 2019, Bestway Foundation donated £100,000 to
1075-588: The Save The Children - a charity that Bestway's charitable trust has been supporting since 2004. In April 2020 the Group companies in Pakistan donated Rs.600 million to fight COVID-19 in Pakistan. In July 2021 the Bestway Foundation donated £975,000 to the Gonville & Caius College, University of Cambridge to establish a £1.3 million Lord Choudrey Scholarship Fund to provide scholarships for PhD students; named in honour of Lord Choudrey. In January 2013, Bestway
1118-463: The UK. In April 2018, Bestway acquired the Bargain Booze and Wine Rack brands for £7 million. In December 2020 it was announced that Bestway would acquire the UK arm of Costcutter from Bibby Line . This acquisition gives Bestway 1,500 stores under multiple brand names including Costcutter, Co-Op, Kwiksave, Mace and Supershop. In January 2023, it was announced Bestway Group Limited had acquired
1161-598: The United States, some of the examples are The Walt Disney Company , Warner Bros. Discovery and The Trump Organization (see below). In Canada, one of the examples is Hudson's Bay Company . Another such conglomerate is J.D. Irving, Limited , which controls a large portion of the economic activities as well as media in the Province of New Brunswick . Some cite the decreased cost of conglomerate stock (a phenomenon known as conglomerate discount ) as evidential of these disadvantages, while other traders believe this tendency to be
1204-455: The conglomerate usually settled the transaction in something other than cash, like debentures , bonds , warrants or convertible debentures (issuing the latter two would effectively dilute its shareholders down the road, but many shareholders at the time were not thinking that far ahead). The conglomerate would then add the target's earnings to its earnings, thereby increasing the conglomerate's overall earnings per share . In finance jargon,
1247-404: The country's leading charity dedicated to conquering stroke. In November 2017, the Bestway Foundation donated £100,000 NSPCC the children's charity. In March 2018 Well Pharmacy donated over 35,000 Foster Grant sunglasses and reading glasses, with a total estimated retail value of £946,000 to In Kind Direct, which distributes consumer goods donated by companies to UK charities. In November 2018;
1290-462: The end came in January 1968, when Litton shocked Wall Street by announcing a quarterly profit of only 21 cents per share, versus 63 cents for the previous year's quarter. This was "just a decline in earnings of about 19 percent", not an actual loss or a corporate scandal, and "yet the stock was crushed, plummeting from $ 90 to $ 53". It would take two more years before it was clear that the conglomerate fad
1333-751: The examples are Adamjee Group , Dawood Hercules , House of Habib , Lakson Group and Nishat Group . In the Philippines , the largest conglomerate of the country is the Ayala Corporation which focuses on malls , bank , real estate development , and telecommunications . The other big conglomerates in the Philippines included JG Summit Holdings , Lopez Holdings Corporation , ABS-CBN Corporation , GMA Network, Inc. , MediaQuest Holdings , TV5 Network, Inc. , SM Investments Corporation , Metro Pacific Investments Corporation , and San Miguel Corporation . In
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1376-658: The group founded Well Pharmacy in Britain, and in 2023 acquired a minority stake in the British supermarket chain Sainsbury's . Bestway Wholesale was established in 1976. The Group set up its first Bestway Cement cement plant in 1995 in Hattar in the KP Province of Pakistan, with an initial investment of US$ 120.0 million. The plant's initial capacity was 0.99 million tonnes per annum, this
1419-714: The headquarters of corporations to mergers, in which independent ventures were reduced to subsidiaries of conglomerates based in New York or Los Angeles. Pittsburgh, for example, lost about a dozen. The terror instilled by the mere prospect of such harsh consequences for executives and their home cities meant that fending off takeovers, real or imagined, was a constant distraction for executives at all corporations seen as choice acquisition targets during this era. The chain reaction of rapid growth through acquisitions could not last forever. When interest rates rose to offset rising inflation, conglomerate profits began to fall. The beginning of
1462-503: The most powerful private economic conglomerate in 1920s Europe – Stinnes Enterprises – which embraced sectors as diverse as manufacturing, mining, shipbuilding, hotels, newspapers, and other enterprises. The best-known British conglomerate was Hanson plc . It followed a rather different timescale than the U.S. examples mentioned above, as it was founded in 1964 and ceased to be a conglomerate when it split itself into four separate listed companies between 1995 and 1997. In Hong Kong, some of
1505-652: The new businesses they had recently purchased, and by the mid-1970s most conglomerates had been reduced to shells. The conglomerate fad was subsequently replaced by newer ideas like focusing on a company's core competency and unlocking shareholder value (which often translate into spin-offs ). In other cases, conglomerates are formed for genuine interests of diversification rather than manipulation of paper return on investment. Companies with this orientation would only make acquisitions or start new branches in other sectors when they believed this would increase profitability or stability by sharing risks. Flush with cash during
1548-714: The production of electronics such as televisions. While not a keiretsu, Sony is an example of a modern Japanese conglomerate with operations in consumer electronics , video games , the music industry , television and film production and distribution , financial services , and telecommunications . In China, many of the country's conglomerates are state-owned enterprises , but there is a substantial number of private conglomerates. Notable conglomerates include BYD , CIMC , China Merchants Bank , Huawei , JXD , Meizu , Ping An Insurance , TCL , Tencent , TP-Link , ZTE , Legend Holdings , Dalian Wanda Group , China Poly Group , Beijing Enterprises , and Fosun International . Fosun
1591-406: The transaction was " accretive to earnings." The relatively lax accounting standards of the time meant that accountants were often able to get away with creative mathematics in calculating the conglomerate's post-acquisition consolidated earnings numbers. In turn, the price of the conglomerate's stock would go up, thereby re-establishing its previous price-earnings ratio, and then it could repeat
1634-425: The well-known conglomerates include Jardine Matheson (AD1824), Swire Group (AD1816), (British companies, one Scottish one English; companies that have a history of over 150 years and have business interests that span across four continents with a focus in Asia.) C K Hutchison Whampoa (now CK Hutchison Holdings ), Sino Group , (both Asian-owned companies specialize business such as real estate and hospitality with
1677-663: The whole process with a new target. In plain English, conglomerates were using rapid acquisitions to create the illusion of rapid growth. In 1968, the peak year of the conglomerate fad, U.S. corporations completed a record number of mergers: approximately 4,500. In that year, at least 26 of the country's 500 largest corporations were acquired, of which 12 had assets above $ 250 million. All this complex company reorganization had very real consequences for people who worked for companies that were either acquired by conglomerates or were seen as likely to be acquired by them. Acquisitions were
1720-519: Was enhanced to 1.17 million tonnes per annum at a cost of US$ 10 million in 2002. In October 2002 Bestway Group successfully bid for a controlling share in United Bank Limited (UBL). The total investment was approximately US$ 210 million. Bestway Group expanded its cement operations in February 2004 by setting up a 1.8 million tonnes per annum cement plant in Chakwal , Punjab Province, Pakistan, at
1763-462: Was formed in 1981 from the merger of Fletcher Holdings , Challenge Corporation, and Tasman Pulp & Paper, in an attempt to create a New Zealand-based multi-national company. At the time, the newly merged company dealt in construction, building supplies, pulp and paper mills, forestry, and oil & gas. Following a series of bungled investments, the company demerged in the early 2000s to concentrate on building and construction. In Pakistan , some of
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1806-642: Was nominated for the Business of the Year award at the British Muslim Awards . The company is a longtime supporter of the UK Conservative Party . Conglomerate (company) A conglomerate ( / k ə ŋ ˈ ɡ l ɒ m ə r ə t / ) is a type of multi-industry company that consists of several different and unrelated business entities that operate in various industries. A conglomerate usually has
1849-487: Was on its way out. The stock market eventually figured out that the conglomerates' bloated and inefficient businesses were as cyclical as any others—indeed, it was that cyclical nature that had caused such businesses to be such undervalued acquisition targets in the first place —and their descent put "the lie to the claim that diversification allowed them to ride out a downturn." A major selloff of conglomerate shares ensued. To keep going, many conglomerates were forced to shed
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