| Abstract | In recent years, the number of mergers and acquisitions that have taken place across the world has increased staggeringly. It has affected all industries, as well as companies in oil and gas area. The total value of merger deals has increased year by year. In 2011, it was USD 317 Billion in oil and gas area. Though more than 50% of mergers and acquisitions transactions fail, Mergers and Acquisitions are still attractive issues that companies chose M & A as growth strategy.
Globalization makes rising the higher number of cross border mergers. Many companies follow merger and acquisition deals because of cost cutting through economic of scale, strengthening the company's market position, raising the competitive competence, gaining access to the new markets, gaining a talent's workforce, acquiring the new knowledge and expertise, gaining the new customer base.
Petro Vietnam Oil Corporation (PVOIL) is going to restructure via merger with PETEC as survival strategy. This research does measuring and assessment on PVOIL's restructuring plan via merger with PETEC. A discussion on aggregate gains follows with reasons why PVOIL choose merger as the best solution for restructuring strategy. The literature review of M & A history which refers to five periods of merger waves indicates an understanding of precipitation of M &A activities.
This research also identifies and subsequently analyses primary data from in-depth interviews that performed by employees of two companies. In order to obtain the best insights of possible adding values or possible unsuccessful factors observed by employees and middle managements of PVOIL and PETEC who involved in mergers and acquisitions, interviews were performed with employees in various sectors ranging from trading department, planning department, administration department of PVOIL and PETEC.
The objective of this study is to identify important elements that can help to build a restructuring strategy plan for the company after merger transaction.
The research, although subject to certain limitations, give the recommendations to PVOIL's board of director for in order to obtain success of restructuring PVOIL via merger with PETEC. |