This report presents a brief summary of the M&A deal and the performance of the Adidas-Salmon Group and the Reebok International which are the top players after Nike, in sportswear market.
Mergers and Acquisitions is an extreme matter of concern in the corporate world since last few decades. M&A can also be considered as a main vehicle which drives towards direct investments, either domestic or foreign. With motives of achieving greater efficiency and effective strategies, most of the companies had gone through at least one M&A activity at least once in a lifetime.
This report contains theories regarding Mergers and Acquisition and is focused on the Cross-border M&A (Adidas- A German company and Reebok- an American …show more content…
|Adidas Core Competencies |Reebok Core Competencies |Combined Core Competencies |
|– Technology |– Trend Identification |– Adidas technology with Reebok design |
|– Customer focus |– Ability to market to a niche segment |– Adidas sports with Reebok women’s market |
|– Brand recognition |– Women’s shoe design |– Adidas shoes with Reebok apparel |
|– Supply chain |– Design expertise |– Adidas global strength & Reebok US strength |
|– Collaboratively competitive |– Celebrity relationships | |
2.2 Due diligence
2.2.1 Legal and regulatory issues:
Any M&A process should face through the regulatory bodies before they are granted the permission. There are various antitrust authorities which will examine and restrict the merger activities that create the monopoly in a particular market. Some of these authorities are the Federal Trade Commission (FTC) in USA, the Competition Commission in the UK, the European Commission in EU and the Federal Cartel Office in Germany. Adidas, being the German company had successfully passed the regulatory check and was approved by both the Federal Cartel