A new alliance against the industry’s number one Samsung forms in East Asia. The Hon-Hai group from Taiwan, better known under the name ‘Foxconn’, as the producer under contract of Apple’s iPhone and iPad, bought 10% of the Japanese electronic enterprise Sharp. The stock exchange reacted with a jump on the announcement of the new Sharp president Takashi Okuda, who is supposed to officially take over the lead of the company in the beginning of April. The stock price of Sharp rose 15%. Okuda announced that Sharp’s strategy will change. They had been trying to get along solo but the pressure from competition was too high. Continue reading
Big Merger & Acquisitions are ubiquitous even in times of economic difficulties. Be it the acquisition of Wyeth by Pfizer Inc for $ 64.5 Billion or Rio Tinto’s acquisition by the Australian mining behemoth, BHP Billiton for $58 billion, M&A deals are part and parcel of the corporate strategy to grow at breakneck pace as companies look to grow inorganically. Almost 60% of all M&A’s fail. Here in this article, I try to dig deep to understand the reasons behind such a high failure rate and unearth the main factors required for an M&A to succeed. Continue reading
Christopher Kummer is the founder of Kummer & Company and professor and advisor on strategy and mergers and acquisitions (M&A).
Mr. Kummer is a visiting professor at Grenoble Ecole de Management, France, and an Adjunct Professor at Webster University in Vienna, Austria. He also is the President of the Institute of Mergers, Acquisitions and Alliances (IMAA), a non-profit academic think tank on M&A. Continue reading