Why the Deal Fails: An Analysis of Corporate Value Conflict in a Transnational Merger and Acquisition

• In Event: Organizational Communication Research Escalator - Extended Session

Abstract

This paper discusses cultural conflicts in the context of global M&A and explores what may have happened between India’s Apollo and U.S Cooper Tire merger that has a joint-venture partner, Chinese Chengshan Group. The case ended in Cooper officially terminating its sale to India's Apollo which signals the failure of the acquisition.This research looks into the communication happened at different stage of the acquisition, e.g. initial negotiation, intensive negotiation, court battle, cease of the negotiation, and analyzes the cultural conflicts among three parties. By pointing out how cultural differences and miscommunications may have resulted in the conflicts among three parties, and how three parties perceived and reacted to those conflicts, this research aims at providing in-depth understanding of the process, dynamic of interactions and conflicts during a global acquisition case. It provides practical suggestions to management of multinational corporations on cross-cultural business negotiation in M&A context.

Author

• Juana Juan Du, Royal Roads University