Corporate Mergers And Acquisitions Integration

With the economy depression in western countries since the 90's, competition among the Multi-National Enterprises (MNEs) has be coming keen. As key players of the international business, many MNEs have made various response to the changes in the market of globalization and unstable global economic environmental through the methods of Merger, Acquisition, Strategic Alliance, Cooperation Restructuring, etc. In order to promote their competitive capability and economic profit. Some developing countries have released that expending scope of an enterprise can promote international competition capability of the company and increase position in the global market. This will strength the Country's economy and national power. So the Government of these countries has been implementing the policy to support the Merger, especially the Mergers in the national strategic areas like oil industry, communication and banks. Merger has become more and more popular in various industries and the size of merger has been getting bigger since mid-90s since the Government supports. It was reported that there were ten biggest Mergers in the mergers' history, nine of which happened in 1998, and there were mainly in the industries of banking, telecommunications, petroleum, etc. British Petroleum Company (BP) started to merger Amoco, a big American oil company, in August 1998 and generated a new round "merger wave" in the world petroleum and chemical industries.As I am working for Amoco, I have experienced BP Amoco Merger process and witnessed a lot of changes in the company as the result of BP Amoco Merger. The purpose of this paper is to try to find out what benefits will have in a company's management and in economic profit after a merger; what is motivation of a merger and what kind of integration project management after the merger. With one of successful mergers BP Amoco Merger could be valuable for reference to the mergers of state-run enterprises in China in the future, especially after China enters the WTO.In this thesis, Charter one introduces concepts of Merger, the type of mergers, the methods of a merger and some theories in the realm of merger; Charter two introduces the background of BP and Amoco company; business status of these two companies just before the merger; BP Amoco merger process; business scope after the merger and major events of the merger. Charter three gives brief of the petrochemical industry; discussing the threats and opportunities faced to BP and Amoco; analyzing the Strengths, Weaknesses of BP and Amoco; analyzing in detail in the motivation of BP Amoco Merger. Charter four introduces the integration project management after the BP Amoco Merger and brings some authoritative guide for an integration success after a merger. Charter five analyzes the new company's business running situation and profits made after the merger; conclusion and experiences made for the success merger of BP and Amoco.