Why would a company buy their competitor?

Yes, I have seen offers for one of the companies I worked for ...and one company bought. 

Buying a competitor is one of the most attractive avenues of growth by acquisitions. By acquiring a competitor you can: Increase your business quite literally ...

It all depends how badly some one wants this company ... usually sale of the company is preferred, however when the owner or shareholders do not agree with the sale and stock is involved a hostile take over could happen .... 

A "hostile takeover" allows a bidder to take over a target company whose management is unwilling to sell the business..A hostile takeover can be accomplished through either a tender offer or a proxy fight. ... 

competitor is an indirect message to let you follow your negative points and resolve it. As well a company could buy the competitor to took from them the best average, to make a big investment in the field they work for, and to accelerate the circulation of work.

Not only is it smart to buy out your competitor but by doing so you have eliminated a weakness and a threat to your organization.

This is one surefire way of dealing with your competitors. Buying a competitor is one of the most attractive avenues of growth by acquisitions. By acquiring a competitor you can:

• • Increase your business quite literally overnight — you immediately take on the business that was previously going to the competitor you just acquired

• • Eliminate a competitor — There is no more efficient way to eliminate your competitor than to buy him!

• • Pricing Power — Beside acquiring a new customer base, with one less competitor, you now may well have more control over price.

• Synergies — Take advantage of synergies like economies of scale, combined customer lists, marketing efficiencies, and more.

To maximize their profit by making two lines of products or services such as high and low, expensive and reasonable etc.

To have a bigger share of the market in sales, marketing, production etc.

To better control the market.

1. For dominating the market price.

2. For establish the unilateral market.

3. For more profit.

I cannot agree with my colleagues more. well done!

to take out competition, to buy certain knowledge, to get experienced people, to expand there business with the clients of them and get an other part of the market

A company would buy a competitor for the same reason a Polar Bear eats humans - to gain something while eliminating a rival who eats the same things.

I agree with Mr. Vinod answer.

1. Expand your business/company

2. Reduce competition

3. Become bigger player in the market

4. Increase revenues/profits

5. Control pricing

6. Synergies