Case Study On Cemex Group

2015 Words9 Pages
Mergers and Acquisitions (M&As) chapter from the textbook (Verbeke 2013), the ideas and theories of M&As are mainly from the research by Ghemawat and Ghadar (2000). Besides, the complementary studies from (Sebenius 1998 and Inkpen 2000), added a different views and theories for M&As process. As these researches were performed back in 1990s and 2000s, therefore it is critical to have literatures update to this particular chapter. The M&As case study regarding Cemex Group will be used as an example for literature updates.

Chapter Summary
Chapter 13 on mergers and acquisitions (M&As) has been summarised from three classic articles with a visual illustrations in Appendix 1.1.
Ghemawat and Ghadar’s view
Ghemawat and Ghadar (2000)
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(2015) stated that cross-border acquisition will have cultural differences between countries which need to be viewed carefully during post-acquisition integration. A classic typology developed by Mirvis and Marks (1992) was being illustrated in Appendix 5.1. The types of integration is referring to the degree of change required by the acquirer and the acquired firm. The authors further elaborate the options for integration in Appendix 5.2 based on the structure choices. For example, ‘absorption’ mergers that require fundamental change in the acquired firm, but little change in the acquiring firm. It is essential for the senior managers fully understand of the merger consequences, and at the same time clearly communicating throughout the organization. The key dilemma of the integration process whereby it requires a lot of resources and time-consuming. Hence, it is advisable to undergo full transformation with integrated operational control has the potential to create new dynamic…show more content…
Cemex start its international M&As switching to culturally proximate markets such as Spain. Cemex has a strong post-acquisition team with experienced managers to integrate and oversee the M&As. Besides, the team managed to integrate the use of ICT in the companies effectively. Cemex constantly engaged in a large-scale effort to bring the ICT up to Cemex standard. Cemex pursue conglomerate vertical acquisition over Neoris in year 2013 as internal provider on Information Technology for technology development (Vargas-Hernandez

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