Gm Merger Acquisition
Diversification Using Mergers and Acquisitions
Diversification Using Mergers and Acquisitions
Companies often implement corporate-level acquisition strategies to achieve product diversification that can build core competencies. In fact, acquisition strategy is the most common means of implementing diversification. For each strategy discussed in the book, including diversification and merger and acquisition strategies, the company creates value only when its resources, capabilities, and core competencies are used productively.
Companies from different industries decide to use an acquisition strategy for several reasons; however, acquisition strategies are not without problems. When acquisitions contribute to poor performance, a company may deem it necessary to restructure its operations.
Driven by M&A
Imagine Maruti Suzuki merging with Ford India. Or Daewoo Motors and Fiat India becoming a part of General Motors India. Or Hindustan Motors merging with Mercedes Benz India.
Sounds farfetched? Not really. In the race to expand their product portfolio for global market dominance, auto companies have gone into a deal frenzy.
Ending their 2-year search for partners, global auto giants DaimlerChrysler and Mitsubishi Motors recently tied the knot, whereby the debt-heavy Japanese company gets $2.04 billion from the German giant for a 34 percent stake.
|the new alliances |
|Who… |…bought what… |…from whom… |… how much |
|General Motors |20% of Fiat |Agnelli Family |$2.40 bn |
|Daimler-Chrysler |34% of Mitsubishi Motor |Mitsubishi Motors |$2.04 bn |
|Volkswagen |34% of Scania |A Holding
Diversification Using Mergers and Acquisitions
Companies often implement corporate-level acquisition strategies to achieve product diversification that can build core competencies. In fact, acquisition strategy is the most common means of implementing diversification. For each strategy discussed in the book, including diversification and merger and acquisition strategies, the company creates value only when its resources, capabilities, and core competencies are used productively.
Companies from different industries decide to use an acquisition strategy for several reasons; however, acquisition strategies are not without problems. When acquisitions contribute to poor performance, a company may deem it necessary to restructure its operations.
Driven by M&A
Imagine Maruti Suzuki merging with Ford India. Or Daewoo Motors and Fiat India becoming a part of General Motors India. Or Hindustan Motors merging with Mercedes Benz India.
Sounds farfetched? Not really. In the race to expand their product portfolio for global market dominance, auto companies have gone into a deal frenzy.
Ending their 2-year search for partners, global auto giants DaimlerChrysler and Mitsubishi Motors recently tied the knot, whereby the debt-heavy Japanese company gets $2.04 billion from the German giant for a 34 percent stake.
|the new alliances |
|Who… |…bought what… |…from whom… |… how much |
|General Motors |20% of Fiat |Agnelli Family |$2.40 bn |
|Daimler-Chrysler |34% of Mitsubishi Motor |Mitsubishi Motors |$2.04 bn |
|Volkswagen |34% of Scania |A Holding