Post-merger and Acquisition Integration: A Case Review of Dial Henkel And BP Amoco

Abstract

Post-merger and Acquisition (M&A) integration often deals with significant transformational changes of merging companies interms of development, communication, implementation andharmonization of a new shared vision, strategic objective, corporateculture, and also combination of best companies’ value practices. Thetransformational change is accentuated on facilitating the role ofdeveloping and executing an effective post-M&A Integration to buildchange cohesively with the strategic management of M&A, and also interms of removing barriers to the success of M&A transaction. Theaims of this study are to give a clear and deep understanding on howto manage the soft factors issues that address in M&A processespecially in the post-M&A integration process and also to elucidatethe critical success factor of M&A process by instilling the bestcharacteristics and the effectiveness level of leadership aspect inM&A. The methodology used in this research is descriptive qualitativeresearch with a method or approach of a case study of Henkel’sAcquisition of The Dial Corporation in 2004. The acquisition of a USAcompany Dial by a German company Henkel evidenced that bothcompanies were successful in M&A transaction and employed theeffectiveness of multi-culture integration strategy. Another casestudy used in this research is British Petroleum (BP) and American OilCompany (Amoco) (also Atlantic Richfield Company (ARCO) andBurmah Castrol) in 1998-2000. The case of BP Amoco showed thatthe monoculture integration strategy or cultural imposition can alsolead to a value creation. Both case studies showed that successfulintegration requires leadership as a foundation to build a solidexecution of post-M&A integration projects in how they planned,communicated and delivered the objectives of the projects