The document discusses mergers and acquisitions as a way for companies to achieve globalization. It provides examples of major mergers and acquisitions that were intended to expand market share globally. The benefits of mergers include increased market share/coverage and synergies from combining operations. However, many mergers and acquisitions ultimately fail to achieve effective synergy. A table analyzes various companies that globalized through mergers and acquisitions based on factors like acquisition, market competition, survival, and dominance. While globalization through M&A can help companies access new markets, the document concludes that most mergers and acquisitions fail to realize their objectives.

1. ACHIEVING
GLOBALISATION
THROUGH MERGERS
AND ACQUISITION
BY
OTIS FRANCIS
SANDRA.C. STROUD
OLUKAYODE. A. AFOLAYAN
HARUNA HAMISU I.

2. INTRODUCTION
 Business driven globalization to some
people means, making the world a
small business continent.
 Globalisation in an international
Business,is seen as a multi-
dimensional process.(Walls. S and
Rees.B, 2004

3. A CRITICAL VIEW
•British Telecom and AT&T
•Daimler’s outright acquisition of Chrysler
•Deutsche Telecom acquired Voice Stream
•Biotech-pharmaceutical mergers designed to combine R&D
capabilities with distribution.
•AOL-Time Warner merged into a multimedia powerhouse in
2001.(Dante. G, 2006)
•Votarantim
•PWC
•BP merged with Amoco
•Starplan acquired Vono
•Vodacom merged with Econet wireless.

4. Reasons for mergers
There are diverse strategic reasons that
prompt organizations to merge.
•For larger market share and to gain
access to each other’s new market.
•To share risk and returns: In sharing risk
and returns, some organisations want to
expand by going to new countries, but
don't want to bear all the loss in case any
do arise.

5. BENEFITS OF MERGERS
•It brings about increased market
share/coverage.
•Synergy. I.e, Preparing a consolidated
Profit and Loss Account/Balance sheet of
the organisations that merged, there
could be gain on Exchange rate
conversion.

6. REASONS FOR ACQUISITON
The four main strategic intentions in which
companies engage in this are:
• Integration
• Concentration
• Diversification
• Globalization

7. TESTING WITH TOOLS
The testing with tools helps to analyze the
companies that globalize via mergers and
acquisition
KEY WORDS
A-Acquisition
M-Merger
C-Market Competition
S-Survival
G-Globalization
DI–Diversification
DO-Dominance

8. COMP A M C S G DI DO
ANY
AMOCO NO YES YES NO YES YES NO
VOTAR YES NO YES NO YES NO NO
ANTIM
BP YES YES YES NO YES YES YES
DAIMLER YES YES YES NO YES YES YES
CHRYSLER NO YES YES NO YES YES NO
PWC NO YES NO YES YES NO NO
STAR YES NO YES NO YES NO YES
PLAN

9. VONO YES NO YES YES YES NO YES
BRITIS YES YES YES NO YES YES YES
H
TELECO
M
AT&T NO YES YES NO YES YES NO
V YES NO YES NO YES NO YES
-MOBIL
E
HP YES YES YES NO YES YES YES
COMPA NO YES YES NO YES YES NO
Q
DISNE YES YES YES NO YES YES YES
Y
NO YES YES NO YES YES NO
CAPITA
L
DEUTSC YES YES YES NO YES YES YES
HE
TELECO
M
VOICE NO YES YES NO YES YES NO
STREAM
ECONET NO NO YES NO YES NO NO
WIRELE
SS

10. CONCLUSION
One of today’s contemporary issues is
globalisation of companies and business
activities across the continent.Despite the
benefits of mergers/acquisition, most
mergers and acquisition fail.
The exercise does not always end in
effective synergy. So where does
globalization lead us today?