Mergers and acquisitions: Porsche-VW Arcelor-Mittal GDF-SUEZ Time Warner-AOL

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Mergers and acquisitions: Porsche-VW Arcelor-Mittal GDF-SUEZ Time Warner-AOL

Résumé du document

Select 4 examples of successful (or failed) mergers or acquisitions
Write an analytical paper about their selected examples to include: short introduction and explanation of M&A. Then, a statement of the main problem(s), reasons for success/failure, and a recommended course of action.

Extraits

[...] It is however important to note that the opposing corporate culture of both car manufacturers can be a brake. Marrying their cultures and organizing the group governance are big challenges. Porsche which is proud of being the most profitable car manufacturer of the world also got excellent reasons to desire with so much interest Volkswagen. However, the image of cheaper cars made by Volkswagen could have brought a change of image. To put it in a nutshell, this successful merger was not very communicated, so that Porsche customers are protected from a cheap image. [...]

[...] PRE-SEMINAR ASSIGNMENT Select 4 examples of successful (or failed) mergers or acquisitions (use the examples in the assigned text book or any other sources). For this individual assignment, students are expected to: Write an analytical paper about their selected examples to include: short introduction and explanation of M&A. Then, a statement of the main problem(s), reasons for success/failure, and a recommended course of action. Post the analysis on Connect before the first day of the seminar. Written document should be maximum 12 pages (no minimum page requirement. [...]

[...] In 2005, Mister Mittal decided to purchase Arcelor[6]. The objectives of this merger were to become an ally with the world leader of the steel and for Mittal to appropriate the skills of his biggest rival. During the merger between Arcelor and Mittal Steel, no major restructuring had been announced in particular in Western Europe. However, the group Arcelor Mittal renewed completely the executive committee with members of Arcelor and Mittal. So, an executive committee was appointed at the beginning of September 2006 to allow the fast pooling of both companies. [...]

[...] The main objective of Mittal by merging with Arcelor is to maximize its profit. By realizing this objective, the group wants to increase its investment in R&D in order to improve the quality of its products, especially by taking into account the environmental requirements, and also improve its social relationships[8]. Indeed, lots of social conflicts appeared during the merger due to the fact that the ex-employees of Arcelor, who are not used to Mittal's processes, find that the communication within the group is made only in a unique direction[9]. [...]

[...] For that purpose, both entities envisaged the creation of common research centers, which will allow the group to face the challenges of the next 50 years[3]. As a result, Porsche now focus on the luxury whereas Volkswagen exploits high-range cars via Audi and middle-range cars with its own cars. The merger offers to the built groups the guarantee of creation on a long- term basis. All profits brought by Porsche can be reinvested in Volkswagen, which remains a very solid group. Both entities can also guarantee their supply. [...]