Mega mining deal: a marriage made in Heaven?

The proposed merger between Glencore and Xstrata is something we will consider this week in the context of the motives for mergers. If the deal goes through it will create the world's biggest mining company. It would be good if you could read about it in advance: •http://www.bbc.co.uk/news/business-1690781616907816

•http://www.guardian.co.uk/business/2012/feb/07/glencore-xstrata-confirm-90-billion-merger7/glencore-xstrata-confirm-90-billion-merger

British Airways

British Airways provides a great case study for mergers and acquisitions. I reckon it is relevant for these bullet points in particular:-

●the motives for takeovers and mergers and how these link with corporate strategy

● the impact on, and reaction of, stakeholders to takeovers and mergers

● the reasons why governments might support or intervene in takeovers and mergers.

BA merged with Iberia in 2010 (the deal was ratified by shareholders of both companies at the end of the year). Now IAG (the merged BA-Iberia) is seeking to takeover BMI. If this deal goes through it will give the company over 50% of the landing slots at Heathrow; no doubt one of the reasons Sir Richard Branson is pushing the message that this deal will be bad for the customer. The links provide useful background detail on the story and will enable you to build a “wow” example

http://www.bbc.co.uk/news/business-16307572 

http://www.guardian.co.uk/business/2011/dec/22/ba-owner-iag-virgin-buy-bmi

http://www.bbc.co.uk/news/business-11862956

Bullet Points

Here are the 6 bullet points for the research theme. We will need “wow examples” for each of them

Research Theme – Takeovers and Mergers

In your research on takeovers and mergers you should consider:

● the motives for takeovers and mergers and how these link with corporate strategy

● the problems of takeovers and mergers including difficulties integrating businesses successfully

● the factors influencing the success of takeovers and mergers

● the impact of takeovers and mergers on the performance of the businesses involved

● the impact on, and reaction of, stakeholders to takeovers and mergers

● the reasons why governments might support or intervene in takeovers and mergers.

You are strongly recommended to compare and contrast a number of different takeovers and mergers.