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0:00
Hello, again. I'm Helene Tenzer,
and I teach International
Management at
LMU Munich School of
Management in Germany.
As part of our course on
International Human
Resource Management,
in this segment, we will
focus on people management in
international mergers and
acquisitions, also called M&As.
0:26
To highlight the
importance of the topic,
let's just consider
a few examples.
In 2018, Bayer AG
from Germany acquired
Monsanto from
the US in a deal valued at
approximately $63 billion.
Microsoft purchased Finnish
Nokia's Devices &
Services division
in 2013 for approximately
$7.2 billion.
US fast food giant
Burger King merged with
Canada's Tim Hortons in
2014 in a deal valued
at about $11 billion.
But acquirers increasingly also
come from what we consider
emerging economy.
For example, concrete
producer CEMEX from
Mexico bought the
US Rinker Group
for roughly $14 billion.
Tata Motors from India
bought the British
luxury car maker,
Jaguar Land Rover, for
about $2.3 billion in 2008.
1:33
But first, let's clarify
what are mergers
and acquisitions.
When two companies unite to
form a new entity,
that's a merger.
Picture the union of Exxon and
Mobil, which together formed
ExxonMobil, combining
their resources
and identities into
one single entity.
Conversely, acquisitions
entail one company
purchasing another
and establishing
itself as the new owner.
However, the acquired
entity continues
to exist as a distinct
brand or business unit.
For example, when Facebook
acquired Instagram in 2012,
Instagram became a
part of Facebook,
but the brand, Instagram, was
still maintained separately.
