Corporate development : Rentokil case
- Presentation of Rentokil
- The financial situation of rentokil
- Presentation of B.E.T
- The financial situation of BET
- The synergies of the both companies
- The financial aspects of the acquisition
This assignment has been undertaken in order to estimate if it is a good opportunity for Rentokil to make a bid for the British Electric Traction or BET. The last few years were very profitable for the two companies that have decided to merge or takeover. If we analyze the growth of the CAC 40, the benchmark of the French stock index, in 2006, we can conclude that there was a very high increase of the French stocks thanks to operations of mergers and acquisitions. More than 60% of the increase of the CAC 40 was the result of these development strategies. These companies have chosen to merge this year in part because of the low rate of the interests and consequently it allows them to grow and increase their profits considerably. The current movement of merger and acquisition is not a common trend in our economical environment. Indeed the two reasons exposed above have to be completed by the fact that a new actor comes to play in the markets. It will be interesting to note how the merger will have an impact on the stock markets and the general public.