To examine the reasons why Renault of France and Nissan of Japan entered into a merger. Over the past decade the automotive industry has been subject to a spate of merges and take‐overs which not only brought about a considerable degree of consolidation, which made it increasingly difficult for smaller concerns such as Renault and Nissan to compete globally. This paper examines the reasons why these two merged and demonstrates how success was achieved in the short term.
The main methodology applied was that of conventional pre‐ and post‐merger analysis models, but with a particular focus on that of Testa and Morosini which has been applied to other industries, but not so far to the automotive.
The conclusions drawn from the papers were that careful pre‐merger approaches had been made by both parties to each other and that Nissan had little alternative but to see Renault as a rescuer. Also illustrated is the role played by strong leadership in the process and the necessity of speedy implementation of post‐merger strategies. Decisions were taken swiftly and the short‐term goals set were achieved.
Limitations centre on the short‐term nature of the paper which has a very narrow focus.
These centre on the importance of a strong relationship between pre‐ and post‐merger strategy policies.
This lies in demonstrating the importance of the Testa‐Morosini model in cross‐border merger analysis.
Emerald Group Publishing Limited
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