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Global HRM Karan Arora, Lovely Professional University

Notes Unit 12: HRM in Cross-border Mergers and Acquisitions

CONTENTS
Objectives
Introduction

12.1 Mergers and Acquisitions (M&A)
12.2 Motives behind M&A
12.3 Risks Involved in M&A

12.3.1 Outbound Deals
12.4 Indian Joint Ventures
12.5 HR Interventions in M&A
12.5.1 HRM Issues in Cross-border M&A
12.5.2 Role prior to deal-(Pre-deal)

12.5.3 Integration Planning
12.5.4 Implementation
12.6 Summary

12.7 Keywords
12.8 Review Questions
12.9 Further Readings

Objectives

After studying this unit, you will be able to:

 Discuss on mergers and acquisitions
 Describe the motives behind mergers and acquisitions
 Identify the risks involved in mergers and acquisitions

 Explain the HR interventions
Introduction

The rise of globalisation has exponentially increased the market for cross border M&A. In 1996
alone there were over 2000 cross border transactions worth a total of approximately $256 billion.
Due to the complicated nature of cross border mergers and acquisitions (M&A), the vast majority
of cross border actions have unsuccessful companies seek to expand their global footprint and
become more agile at creating high-performing businesses and cultures across national
boundaries. Mergers of companies with headquarters in the same country are also a type of
cross-border Merger.
For example, when Boeing acquires McDonnell Douglas, the two American companies must
integrate operations in dozens of countries around the world. This is just as true for other
supposedly “single country” mergers, such as the $27 billion dollar merger of Swiss drug
makers Sandoz and Ciba-Geigy (now Novartis).

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