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Can a merger of equals truly exist?

Jayanth-Reddy Alluru, Mark Thomas

Strategic Direction

ISSN: 0258-0543

Article publication date: 13 June 2016

887

Abstract

Purpose

Between 1985 and 2001, only 45 of 90,480 total European mergers and acquisitions were identified as a merger of equals (Zaheer et al., 2003). This indicates that there were less than 1 per cent of the M&A deals that could actually be categorized as a merger of equals. This paper aims to analyse two recent mergers and assess to what extent they are “of equals”.

Design/methodology/approach

The paper takes a multi-case study approach looking specifically at the Lafarge-Holcim and DuPont-Dow Chemical mergers.

Findings

Zaheer et al. (2003) point out that in the case of a merger of equals emotions run usually high, perceptions of fairness and unfairness are strongly related to identification with their former organizations, and the very idea of “equality” can backfire, as integration can never be equal in all its aspects. It remains to be seen if the Lafarge-Holcim and the DuPont-Dow Chemicals will truly be equal.

Practical implications

The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations.

Originality/value

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Keywords

Citation

Alluru, J.-R. and Thomas, M. (2016), "Can a merger of equals truly exist?", Strategic Direction, Vol. 32 No. 6, pp. 40-42. https://doi.org/10.1108/SD-03-2016-0039

Publisher

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Emerald Group Publishing Limited

Copyright © 2016, Emerald Group Publishing Limited

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