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People management in international mergers and acquisitions

Published on August 29, 2024   12 min

A selection of talks on Management, Leadership & Organisation

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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.

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People management in international mergers and acquisitions

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