When Daimler and Chrysler announced that they would merge, it was seen as the main industrial merger seen since a very long time. This merger was expected to give birth to a new industrial giant which was supposed to become the fifth largest automobile manufacturer worldwide. The merger between Daimler and Chrysler became official in 1998. This merger occurred between two car manufacturers of a similar size on the market. None of them was supposed to take over the other one. The two car manufacturers had almost the same size and similar activities, even if not the same target and strategy. Daimler is a German company, manufacturing cars since 1890. The company has a heavy historical background, which has brought a lot of experience. Daimler is the thirteenth largest car manufacturer worldwide. The company owns other brands like Mercedes Benz, and is involved with other companies too. Chrysler is an American car manufacturer since 1925, and owns two other brands, which are Jeep and Dodge. The strategy of Chrysler has always been Flexibility and Innovation. It means, to be always the first to build a certain type of car. For example recently, Chrysler made the PT Cruiser, Crossfire, and even invented the Van concept in the US. Some former brands owned by Chrysler issued famous cars like the SIMCA or the TALBOT. Innovation and differentiation has always been very important for Chrysler.
[...] BP (British Petroleum) has been founded at the beginning of the 20th century. The State Company was privatized in 1976. BP made several acquisitions, and particularly the acquisition of Amoco (US company) in 1998, which allowed it to become the third biggest petrol company worldwide and extends to 70 countries. The group kept the BP name, but changed its meaning to “Beyond Petroleum”. The two main competitors are Exxon Mobil and Royal Dutch Shell. Here are some key numbers • Sales 2006: $ • Year sales growth: • 2006 Net income: $ • Year Net income growth: • Number of employees 2006: 97,000 • Year Employee Growth: The new BP Amoco company is composed by 60% of BP shareholders and 40% of Amoco original shareholders and the price proposed by BP to buy Amoco was $110 billion.The company's activities are split between gas, oil, chemical and solar operations. [...]
[...] - November 2006- May 2007: The merger is not 100% sure, because it will depend mainly on the results of the French Presidential elections: if the left party wins the elections, it will not hold the merger. On the contrary, if the right party wins, it will maintain the merger. - May 2007: M. Sarkozy won the presidential elections and allows the merger, but with modifications. The government wants the merger to be equal to equal, and Suez is bigger than GDF. [...]
[...] Recommendation for Investors The future company has great growth potential as the market share will be 34% and it will centralize most of the worldwide financial information. Moreover, the activities of both companies will be complementary (press + Finance ) and they will benefit from the synergy effect and make economies of scale. The perspective for shareholders is quite good for the moment, so I would advise to invest in the company. Rentokil plc Rentokil is an international company created in 1962 providing services to other companies and to collectivity. [...]
[...] Reuters Thomson • Founded in Canada in 1934 • Founded in London in 1851 • Present in 37 countries • 1st or 2nd positions in business • A leading provider of integrated & information professional markets solutions to business and • Electronic, subscription-based professional customers services • At the center of business & generate high recurring revenue and commercial enterprise dealings high incremental profitability every day • Generate significant and • Thomson Group 2006 revenue US $ consistent 6.6 billion levels of free cash flow–5 year free cash flow CAGR = 20% • Around 370,000 professional users • Approximately 16,900 staff in 209 countries • World's largest international multimedia news agency • Reuters Group 2006 revenue £ 2.6 billion Drivers • To be the largest information services & news company and get the first position worldwide, with 34% of the market (against 33% for the direct competitor Bloomberg). • To have a strong position in the financial area. If the acquisition is validated, the company will have most of the financial worldwide information. • To benefit from the synergy effect of the acquisition. [...]
[...] In short term, the merger will allow the company to get over 1 billion Euros in synergy and optimization of finances. In mid term (until 2013), operational economies should be around 1 billion euros per year. Concerning long term view, the consequences expected are those of massive investment of GDF SUEZ. They will determine the good/bad results of the group's strategy. All these previsions are quite positive for the investors and shareholders, so I would recommend investing in this company in the future for short and mid term first. [...]
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