Read Assessing Procter and Gamble's Acquisition of Gillette.
Write a 5 page paper (1500 or more words) in APA format in response to the questions listed below:
- What kind of M&A event is the story describing? (Is a horizontal/vertical merger, consolidation, or other kind of event?) How do you know? Be sure to justify your response.
- Part of the M&A event required both companies to divest assets. Why would a government regulator force them to divest certain assets as to approve an M&A event? (Hint: This requires TWO chapters.)
- Given forced divestiture, why do you think the M&A event occurred? What did the companies, boards, and shareholders gain by selling off segments and committing to the M&A event? What was in it for them?
- After reading the story, do you think people got what they wanted out of the M&A event? (Consider management, shareholders, and other people in the story!)
- What is your opinion of the survivor and can you propose measures before and after the M&A event as to gauge whether the M&A effort was worthwhile?