THE FAILED BIRTH OF A GIANT: LESSONS LEARNED FROM THE COLLAPSE OF THE EADS / BAE SYSTEMS MERGER

Pierre Barbaroux () and Blandine Laperche ()
Additional contact information
Pierre Barbaroux: CReA - Centre de Recherche de l'École de l'air - Armée de l'air et de l'espace
Blandine Laperche: CLERSÉ - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille - CNRS - Centre National de la Recherche Scientifique, LAB.RII - Laboratoire de Recherche sur l'Industrie et l'Innovation - ULCO - Université du Littoral Côte d'Opale - CNRS - Centre National de la Recherche Scientifique

Post-Print from HAL

Abstract: This paper deals with the project of a merger between BAE systems and EADS, announced in September 2012 and finally cancelled one month later. It investigates the rationale of the merger project and the reasons that explain its collapse. Our first aim is to assess the importance - usually put forward in the literature - of the pre-merger phase in the success or the failure of a merger project. Our second aim is to put forward the specificities of mergers when defence firms are involved. Using a single case study methodology, we show that the economic rationality of the project was based on industrial complementaries, economic synergies and personal motives. We then investigate the many political divergences, specific to the defence industry, which emerged during the pre-merger phase. Finally, the paper draws on the implications of the failure of the merger project.

Date: 2013-04-01
References: Add references at CitEc
Citations:

Published in Journal of Innovation Economics & Management, 2013, 2 (12), pp.103-125

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03223881

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().