Success in international mergers: case studies of the Swedish-Finnish mergers Cloetta Fazer and Stora Enso

Abstract: Mergers are increasing due to the competitive and financial pressure of
globalization. Previous research shows that there is a high failure rate in
mergers. Mergers of equals often causes power struggle, as members of both
companies seek control over the new organization. There is much written on
ways and means that should be adopted by companies to ensure success,
however there are few empirical studies discussing why specific merger have
succeeded. The purpose of this thesis is to gain a deeper understanding of
the factors contributing to success in international mergers. Factors that
motivate the merger, the impact of culture as well as measures adopted in
the pre- and post merger phases in order to reach success are being studied
in depth. The authors have chosen to investigate Swedish and Finnish
mergers since these, according to Svenska Studieförbundet Näringsliv (SNS)
have been seemingly successful. Research is made on the mergers of Cloetta
Fazer and Stora Enso and conclusions to be drawn are that both have been
successful in measures adopted especially at the post merger phase and that
both companies to a great extent have reached success.