Introduction The 16 th century marked the height of mercantilism in Britain and the rest of Europe. Britain’s extensive expansionist strategy saw its acquisition of colonies in North America besides those in other continents. Although mercantilism was not cohesively applied in all British colonies, they had similar characteristics. The state was to control human behaviour within the territories and regulate a number of economic aspects. The purpose of the acquired territories was solely to satisfy economic needs of the colonial master. This paper shall critically examine the events leading to the acquisition and eventual loss of the thirteen British colonies in North America. We shall analyze reasons for British interest in North America, the course of colonization, and reasons for their defeat during the war for independence. Discussion Initial Contacts British fishermen were the first people to have discovered North America as a rich fishing ground worth exploiting. Full invasion of the newly found lands was difficult at the time of King Henry V111 because of political and religious wrangles that involved Britain in Europe. Interest in these lands was to control of the flourishing Spanish trade. Initial colonies that were formed by the likes of Sir Walter Raleigh in 1585 and Sir Humphrey Gilbert in 1583 received strong opposition from the Spanish (Tuveson, 1980). Permanent Settlements A peace treaty was signed between England and Spain in 1604 that resolved the long standing disputes and rivalry between the two countries. With the peace agreement, England directed its resources and ambition fully to the acquisition of North America. North America was in 1906, divided into two by the Englishmen. All of Atlantic sea –board was referred to as North Virginia later to be called New England. This area was reserved for merchants and fishermen from south of England (Merrill, 2004). The remaining part, south Virginia, was reserved for the English who wished to settle and invest in the country. The thirteen colonies included New Hampshire, Massachusetts, Connecticut, Rhode Island, New York, New Jersey, Pennsylvania, Delaware, Maryland, Virginia, North Carolina, South Carolina, and Georgia. Acquisition of colonies in America was partly prompted by the English civil war. The reigning kingdom, the Stuart monarchy, was in favour of Catholicism over the Anglican Church. Religious refugees sought haven in New England, an act that the king was too pleased with, and eager to encourage as a way of reducing opposition in his rule. He, therefore, granted them charters to establish colonies in the new lands across the Atlantic. In the same year, king James of England chartered a group of entrepreneurs from London to settle in Chesapeake, North America. The settlers were to seek gold and a route to Orient through the Atlantic. Research shows that these early settlers were ill equipped with the right knowledge and intentions for their task. The group arrived at the island of Jamestown and established the English colony of Virginia in1607 (Levine, 2007). The settlers faced opposition from the native Algonquian, prompting them to build a fort for protection. The group continued to suffer from diseases, famine, and the continued attacks from the Algonquian. The Powhatan Indian trade, however,