chapter  14
35 Pages

Radical change: mergers and acquisitions

Successful acquirers are able to create value by driving incremental growth. (Attributed to LEGAmedia, Savill and Wright, 2000)

Despite the volatility of the financial markets from the start of the new millennium, the trend towards mergers and acquisitions appears set to continue, especially in mature sectors such as manufacturing and financial services. The early 2000s has seen the whole field of M&As becoming more focused and strategically driven. Mega-deals are on the increase, and industry-specific restructurings in sectors such as telecommunications, media and technology, pharmaceuticals and chemicals reflect the ongoing quest for consolidation, growth and global reach. Similarly, divestments are increasingly common as organizations focus on their core activities in a troubled economic climate. In some sectors, change of ownership has become so frequent that employees have trouble remembering the latest name of their company!