Crédit Agricole and Emporiki. Buying a Greek bank in 2006. What could go wrong?

Abstract

Purpose

The aim of this paper is to see how NOT to manage an acquisition through the case study of one of the worst M&As in recent years: Emporiki Bank’s by Crédit Agricole. Although the role of the banks is to manage risk, the acquisition of Emporiki by Crédit Agricole shows how easy it is, when ill prepared, to make one mistake after another and get trapped without a way out. It can even cause to take such desperate decisions as in this case sell an entire bank for one single euro.

Design/methodology/approach

General review.

Findings

The paper shows that being a very successful bank does not guarantee in any way good M&As, especially in an unknown market. Preparation, understanding of the whole situation and reactivity is key for a successful M&A. Without it, the consequences can be disastrous.

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.

Citation

Zambelis, E. and Thomas, M. (2016), "Crédit Agricole and Emporiki. Buying a Greek bank in 2006. What could go wrong?", Strategic Direction, Vol. 32 No. 9, pp. 25-27. https://doi.org/10.1108/SD-05-2016-0070