Fiat-Chrysler deal: looking for a good returns from M&A

摘要

From the above case, it appears that one of the main issues that needs to be addressed in the quest for a successful cross-border merger is a higher degree of integration of the two merging entities, from industrial and financial points of view. Products and markets, therefore, need to be complementary and compatible, so that the positive effects of economies of scale through the sharing of purchasing and technologies can be fully leveraged. Finally, to achieve a satisfactory level of integration, both entities must be willing and able to work together and focus on the same overall objective. In the Fiat-Chrysler case, both Groups were highly motivated to achieve a common goal. On the one hand, for Fiat, the deal represented the ideal occasion for a revolution of its strategy, offering excellent growth opportunities for the Group. On the other hand, Chrysler received some funding from the US Government, on the condition that it achieves a satisfactory turnaround, for which it needed the right partner. The alternative for Chrysler would have been bankruptcy.