Stonehouse et al. (2004)

Management > Global Strategic Management > Lectures > Independent Research > Stonehouse et al. > Alliances/Integration > Transnational M&A

Transnational M&A

Merger - companies agree to pool their assets into a new business entity

Acquisition - unequal joining of companies, where one buys the other and absorbs it into itself. An acquisition can be agreed or hostile.

Integration - a generic term, which encompasses both mergers and acquisitions into its definition

Motivations for M&As

• To gain market entry
• To improve market share
• To increase product and market portfolio. The firm more robust in times of trauma if it exists in a number of markets and has a number of products
• Reduction of competition, especially if the target is a competitor
• Leveraging of core competences
• Access to supple or distribution channels
• Product development
• Economies of scale and scope
• Technology acquisition
• Resource utilisation
• Reputation enhancement

Problems with integration

Success factors

Collaborative ventures and strategic alliances

Types

Successful alliances and networks

Strategic management of networks and alliances