5024SSL
Managing People in a Global Context
Lecture Seven:
Cross Border Mergers &
Acquisitions
, Objectives
Describe the M&A process
Understand the reasons for Cross-border M&As
Explain why cross border M&As succeed or fail
Understand different integration typologies
Explore the human challenges associated with M&As
, Key Terminologies
Merger:
Agreement between two companies to
join their operations together, the
partners are often equal
Results in the formation of a new
company
Acquisition:
When a financially stronger company
purchases over 50% of shares of
another company and folds it into its
operation
No new company is formed as
acquiring firm keeps its legal identity
while integrating a new company into its
own activities
Source: Dowling et al., 2012
Managing People in a Global Context
Lecture Seven:
Cross Border Mergers &
Acquisitions
, Objectives
Describe the M&A process
Understand the reasons for Cross-border M&As
Explain why cross border M&As succeed or fail
Understand different integration typologies
Explore the human challenges associated with M&As
, Key Terminologies
Merger:
Agreement between two companies to
join their operations together, the
partners are often equal
Results in the formation of a new
company
Acquisition:
When a financially stronger company
purchases over 50% of shares of
another company and folds it into its
operation
No new company is formed as
acquiring firm keeps its legal identity
while integrating a new company into its
own activities
Source: Dowling et al., 2012
