SGMA 591 Lecture Notes - Lecture 8: Daimler-Benz, Arcelor, Woolco

• School: University of Calgary
• Department: Strategy and Global Management
• Course: SGMA 591
• Professor: Ayesha Malhotra

Document Summary

Global m&a value: 2015: usd 4. 7 trillion (6% decrease over 2012, cross border activity at usd 1. 6 trillion. Most active regions of the world: asia, north america. Healthcare and energy sectors most active (14. 2% and 12. 7% of total) Which is the most targeted country: usa. Two types (we cover both types): within-industry acquisitions, diversifying acquisitions. Two firms integrate operations on a relatively co-equal basis. One firm ends up calling the shots (daimler- Takeover special type of acquisition; target firm does not solicit the bid. Example: mittal steel takes over arcelor in. M&a very popular comes and goes in waves after 1980s. Research on m&a: strategy and finance studies: motives, results of m&a. Porter more than 60% divest their acquisitions within. Company that makes acquisition: stock value goes down. Company that is bought: value goes up. M&a are bad for your accounting returns on average. Smaller firms tend to do better with their acquisitions than larger firms.