When Saint Gobain Acquires Bpb

Birmingham Business School MBA International Business 2005/06 07 15442: INTERNATIONAL BUSINESS FINANCE lector: Dr John Cadle: Cross Border Acquisitions: When Saint-Gobain acquires BPB Student ID: 797300 Length: Approx.3000 spoken language OUTLINE administrator summary P3 Introduction: When Saint-Gobain acquires BPB P4 Synergies thought to be gained from such acquisition P5 ? functional synergiesP5 ?Financial synergiesP7 The valuation of such acquisitions ( methods and problems) P9 ?Valuation of the current rank of the target company.P10 ?Problem: the valuation of the potential synergies to be gainedP11 Conclusion P12 References P13 Appendixes P15 Executive summary By the end of 2005, Saint-Gobain, a French leading producer, mainframe computer and distributor of materials, acquired for ?5.8 billion the company BPB, British Plastic Boarder, the side of meat leader in plasterboard: This acquisitionwill allow the French lodge to become the world leader in building intimate solutions. The motive of this acquisition, as for any M&A, is to take avail of the synergistic benefits to increase the company share value.

In fact, in that respect are multiple synergies to be gained from such acquisition: These synergies could be divided into operation synergies and financial synergies: While operational synergies broadly speaking affect the operations of the combined firms and generally show up an increasing Cash Flow, the financial synergies are much more focused and may result in higher specie flows for the company but could also take the form of overthrow discount rates (A. Damodaran, 2005). The board of Saint-Gobain believes that the acquisition of BPB will go away an access to key markets, a wider portfolio of activities, the acquisition of technical skills and the economies of scales resulting from a combined product offering and the sharing of commercial, operational and logistic practices. In addition to these operational synergies, more... If you want to get a full essay, order it on our website: Orderessay

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