There has been a significant increase in the number and value of cross-border mergers among multinational businesses in recent years. Some of the reasons for this increase are due to an increase in competition, the growth in global markets, and the rapid changes in technology. In order to justify a merger, management usually claims that the merger will produce synergy. It claims that the merger will increase revenues, earnings, cash flows, the value of stockholders' equity, and will benefit society. The purpose of this article is to discuss some of the issues involved in cross-border mergers among multinational businesses, suggest means of overcoming problems encountered in cross-border mergers, and present a case study of how a German multinational company overcame the problems it faced in a recent merger with a US company.
Cascini, K. & Agami, A.M. (2001). Issues raised in cross-border mergers. In Klein, H.E. (Ed.). Interactive Teaching and Learning Across Disciplines and Cultures : Case Method & Other Techniques. Needham, MA: World Association for Case Method Research & Application. Print.