Subject category:
Strategy and General Management
Published by:
International Institute for Management Development (IMD)
Version: 30.04.2007
Length: 9 pages
Data source: Field research
Abstract
This is part of a case series. Crompton Greaves (CG) is an Indian company that has never made an acquisition. In the (A) case, it is proposing to buy Pauwels, a Belgian company with plants in five countries, that is on the verge of bankruptcy. It looks extremely risky. Should they go ahead? If so, how should they handle the integration of the two companies? Pauwels is five times the size of CG's power transmission division. The acquisition was made.
About
Abstract
This is part of a case series. Crompton Greaves (CG) is an Indian company that has never made an acquisition. In the (A) case, it is proposing to buy Pauwels, a Belgian company with plants in five countries, that is on the verge of bankruptcy. It looks extremely risky. Should they go ahead? If so, how should they handle the integration of the two companies? Pauwels is five times the size of CG's power transmission division. The acquisition was made.