OPPapers.com

M&A In The Telecommunication Sector

Mergers and Acquisitions in the Telecommunication Sector
The acquisition of O2 by Telefónica S.A.

International Business – Intercultural Studies
Management



Table of contents

1. Introduction 1

2. Industry 1

3. Telefónica 3

3.1 Background of the company 3

3.2 Facts and figures 4

4. O2 4

4.1 Background of the company 4

4.2 Facts und figures 5

5. Acquisition 5

5.1 Process 5

5.2 Integration mode 7

5.3 Motives 7

6. Due Diligence 8

6.1 Culture Due Diligence of Telefónica 9

6.2 HR Due Diligence of Telefónica 11

6.3 Culture Due Diligence of O2 13

6.4 HR Due Diligence of O2 14

7. National cultures 15

8. Outcome 17

9. Conclusion 18

Bibliography 20


1. Introduction
Over the past ten years most of the growth in international business has been made via gross-border mergers and acquisitions rather than green-field investment (n.n.1, 2000: 10).
M&A activities are very popular both at home and abroad. As a general rule, strategic transactions are only as good as their operational implementation. Therefore, the integration is a very important topic concerning mergers and acquisitions. In terms of cross-border operations not only the different organisational cultures have to be considered but also the dissimilar national cultures. The current mergers and acquisitions of international enterprises are predominantly horizontal and lateral fusions respectively. Their motives are primary an extension of the market share in the core business. It is a matter of developing new markets as well as protecting and increasing market shares in already consisting markets. Another motive is the expected realisation of synergy effects via economies of scale and economies of...