Acquisition Wave in the Fine Chemicals Industry (C): Degussa-Laporte Acquisition Case Solution
Abstract:
We intend to explain how supervisors' choices to make an acquisition and to figure out the acquisition rate are most likely to be affected by the merger activity in their industry and their rivals' actions. Owned by investor pressure to focus their portfolios, leading specialized and fine chemicals gamers such as Degussa, Clariant and Rhodia got in into significant fine chemicals acquisition in 2000 and paid too much. The reality that the other companies paid too much, regardless of openly readily available signals from stock industry suggesting the overpayment, and the nature of the chemicals industry and management, are clear indications for unreasonable herd habits.
This is just an excerpt. This case is about Strategy
published: 05 Jan 2006
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