As a result of your investigation and analysis, would you recommend a different M&A strategy? Why or why not? I will share the motives and strategy of Exxon Mobil merger paper. through this analysis would a different M&A strategy be needed or to stay with the original plan.
I will stay with the original plan and do not think that an alternative M&A strategy was required for this scenario. Given the circumstances in front of both the companies, horizontal merger was indeed the most appropriate strategy to overcome cost related issues. Horizontal merger provided the option to both these companies to reap the benefits of positive synergies arising due to the merger. It allowed both companies to overcome cost related issues by capturing all the operational synergies that became possible due to amalgamation of the large scale operations of both the companies. The quantum improvement in terms of operational efficiency would not have been possible via other type of mergers, such as vertical merger.
The merger of the equals appeared to be ...
I will stay with the original plan and do not think that an alternative M&A strategy was required for this scenario.