Chapter 9: Four Case Studies
Bruno Cassiman, Veerle Minne, Tom Pellens, Dafne Reymen and Geert Steurs* 9.1 INTRODUCTION This chapter presents four case studies of mergers and acquisitions in the pharmaceutical and chemical industries. The goal of this chapter, and its speciﬁc added value, is to closely analyse and convincingly specify some of the mechanisms underlying the theoretical framework – and the empirical results – presented in this book. The four cases presented are: ● ● ● ● the acquisition of Novamax Technologies by Henkel; the merger of vinyl activities of Solvay and BASF into Solvin; the acquisition of Gist-brocades by DSM; and the merger of Pharmacia & Upjohn and Monsanto into the Pharmacia Corporation. By taking an internal perspective of observation, we can gain speciﬁc insights on the process of target selection and the ﬁrms’ integration as well as their eﬀect on research and development (R&D) performance. These case studies will allow us to better understand the process that explains the eﬀect of Mergers and acquisitions (M&A) on R&D and innovation. The four cases are based in the pharmaceutical and chemical industries. When studying the eﬀect of M&A on R&D and technological innovation, focusing on the pharmaceutical and chemical industries appears appropriate for a series of reasons. First, these sectors have witnessed some of the largest deals of the last decade and have been concentrating over time. While in 1985 the 10 largest pharmaceutical ﬁrms accounted for about 20 per cent of worldwide sales, in some 15 years this ﬁgure increased...
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