Tuesday, April 17, 2007

Exclusivity’s curse!

What do Royal Dutch Shell (MCap of $118.8 billion), Unilever ($39.4 billion), KLM ($12.3 billion) & Logica CMG ($5.31 billion) share in common (besides being heavyweights in their respective sectors)? Well, they belong(ed) to the Anglo-Dutch mixed race! And while strategists have debated over the solidarity of such entities, UK’s Barclays bank’s merger with Dutch-ABN Amro gives them another chance to analyse them in the present too! Barclays found the Dutch (ABN Amro) willing to join hands for a gigantic $174.71 billion entity! So, will this merger be a rare success? Or will it prove what Booz Allen Hamilton comprehensively stated (in its report – ‘Merger Integration: Delivering On the Promise’) that “despite many promises based on solid synergistic potential... most mergers fail”?

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Source : IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative