University of East London

Project Description

The role of Human Resource (HR) in the post-merger integration phase of International Mergers and Acquisitions (IM&As).

Project Abstract

Multinational Corporations (MNCs) are realizing that rather than competing against each other it is better to merge and attain competitive advantages. Other reasons for mergers include promotion of growth, adjusting with new management, reacting to the change in government laws and regulations. There are also benefits of change in the exchange rate of currencies of different countries. Mergers could also take place as a result of change in political and economic conditions, it is useful for lowering the labour costs, and there are chances of increased productivity and to find a new customer base. The recent M&As witnessed in Indian MNCs are Tata-Jaguar-Land Rover, Adidas-Reebok, Vodafone-Hutch. A merger can be defined as creation of new company when two organizations decide to join forces and act in synergy. An acquisition is termed as an activity where a firm acquires and controls another firm. The acquired entity acts in accordance to the buyer�s rules and regulations (Scullion and Linehan, 2005). W. T. Grimm�s MergerStat Review showed a rapid increase in the number of M&As worldwide as 197 acquisitions were observed in 1985, compared to 1999 when 957 companies were acquired. Mergers can be of two types; merger of equals and a merger of unequals. The Chief Executive Officer (CEO) of Daimler, Schrewpp, claimed that the merger of Daimler and Chrylser was a merger of equals (Evans et al., 2002). Similarly acquisitions are of many types; some involve acquisition and integration, while others are acquisition and separation. GE, Siemens, and Cisco Systems are good example of the former, while Unilever and Best Foods are examples of the latter. Companies have also witnessed friendly and hostile acquisitions

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Role of HR managers 20
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