Cemex Case Study

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Mergers and acquisitions (“M&A”) refer to the consolidation of two companies and occur for a number of reasons, including growth, synergy, market power, sustainable competitive advantage, and diversification. M&As enable organizations to share resources, leverage competencies, gain flexibility and create opportunities that the organization may not otherwise have been able to create. An increase of international mergers and acquisitions seen over the last few years can be attributed to advances in technology, globalization and deregulation. Globalization and increased competition have resulted in organizations expanding their operations to foreign markets (Antila & Kakkonen, 2008). While M&As are widely utilized, many are not successful. …show more content…

The Company was founded in 1906 in Monterrey, Mexico and has since become one of the top global cement companies in the world. The Company produces, distributes and sells cement, concrete and related building materials in more than 50 countries. In an effort to consolidate its position as one of the top three global players in the industry and expand its global presence, the Company successfully acquired Ready Mix Concrete in 2004 and Rinker group in 2006. This paper will discuss the factors that led to the success of Cemex with respect to mergers and acquisitions involving cross-border target …show more content…

This synergy will help enhance the Company’s performance and profitability. In addition Cemex hopes to share knowledge which will help the Company improve overall operating efficiency and profitability. Having a comprehensive integration process will help the Company quickly, efficiently and cost-effectively integrate the two companies, which will provide the company with a competitive advantage. Having standard operating procedures and providing constant and effective communication with employees throughout the organization will reduce anxiety which will help keep productivity high and reduce the possibility of the spread of rumors and

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