Case study free download as powerpoint presentation. Conocophillips is an integrated oil and gas company that recently merged to form a successful partnership. Case code case title case studies structured assignment teaching notes reprint permission maa0226. Even then just 23% of all acquisitions earn their cost of capital. Introduction a study by kpmg international highlights that 83% of acquisitions and mergers fail to create the intended value pr newswire, 1999. The ten case studies reveal that communication is a necessity, drastically improving the success of a merger, and a cultural assessment of. Conocophillips sells more assets, but some analysts. Business challenge each year, conocophillips alaska sets organizational targets focused on margin improvement for its business unit. This merger is a cash plus stock reorganization, a type of transaction which has become more and more frequent in.
Then, i look at one of the possible alternatives to the chosen transaction and compare that alternative with the actual long term impacts of the sale. Apr 19, 2016 the first set of differences macrolevel lie in the differences of corporate cultures and corporate values. Case studies from norway, eagle ford, western canada, alaska and australia answer. Result showed a positive impact on the performance. The joint venture jv handbook ihs consulting strategic. Leasehold acquisition, optimization of oil sands development and. Conocophillips controlled or managed business unit. With conditions, ftc approves merger of phillips and. Mergers and acquisitions edinburgh business school ix preface an understanding of mergers and acquisitions as a discipline is increasingly important in modern business. Why conocophillips isnt interested in a merger the motley fool. Phillips petroleum, conoco agree to merger deal the. In 2002, phillips petroleum company and conoco completed their merger. The joint venture jv handbook 5 of 23 ihs consulting economies of scale infineum holdings b.
With conditions, ftc approves merger of phillips and conoco. Conocophillips to hold firstquarter earnings conference call on tuesday, april 30. Jan 31, 2002 chevron eyeing phillips, conoco board discusses hostile takeover bid the companys board of directors yesterday discussed whether to make a hostile takeover bid for either phillips petroleum co. This is the case of conocophillips, whose merger, announced on november 19, 2001, was created to position them to better compete against other leading companies in their peer group consisting of exxonmobil, shell, chevron, and bp. Managements discussion and analysis of financial condition and.
Chevron eyeing phillips, conoco board discusses hostile. Conocophillips merger, the company steadily trimmed debt until the time of. Conocophillips case study idea campaigns for continuous improvement joe ramos continuous improvement lead conocophillips. This is one of the major deals in the wave of consolidation that is sweeping the us oil industry since the 1970s. Then, i look at one of the possible alternatives to the chosen transaction and compare that alternative. Nov 19, 2001 phillips petroleum, conoco agree to merger deal by steven. Conocophillips has completed the merger of conoco inc. The first set of differences macrolevel lie in the differences of corporate cultures and corporate values. Certain subsidiaries are omitted since such companies considered in the aggregate do not constitute a significant subsidiary. Mulva, who has led conocophillips since the 2002 merger that created it, will retire. Abstract in this paper, we are examining the 1998 dupont spin off of conoco by analyzing the transaction itself. Below we detail several case studies demonstrating our value to clients in the transaction process.
The main objective of this study pivots on the idea of being able to create a comparison. Mergers and acquisitions are designed and executed to create growth. Mulva spearheaded the companys yearslong buying spree, striking 31 deals since the union of conoco and phillips petroleum, according to data from capital iq. Case study conocophillips human factors international. The case discusses government perspectives, environmental per. Mulva spearheaded the companys yearslong buying spree, striking 31 deals since the union of conoco and phillips petroleum, according to. Analysis of proposed consent order to aid public comment 34. Conocophillips, formed by the 2002 merger of conoco and phillips petroleum, grew into the third largest oil company in the united states. The results show that japanese companies do not necessarily have high cultural adaptive abilities. Cultural differences in international merger and acquisitions. Acquisition essentially means to acquire or to takeover. According to one study cited, eightythree percent of mergers and acquisitions fail to create their intended value. This merger is a cash plus stock reorganization, a type of transaction which has become more and more frequent in recent years. Commn 1997 merged companys market dominance over generation and control over transmission will adversely impact retail competition.
The lessons from the case studies of failed mergers tell much of the story of this disconnect. The new management team of conocophillips deemed it critical to centralize the two companies servers and move towards selfserve intranet portals. Expatriate an employee assigned to a position by company request outside the home country. Dollar payroll employees conocophillips reserves the right to amend or terminate its benefits plans at any time, without notice, in its sole discretion. This case study highlights the merger between german sportswearmaker adidas and reebok to take on market leader nike in 2005. At the end of last month, the houston oil and gas giant. Derick rill, office of public affairs 2023262161 or 2023262472 staff contact.
Working through a merger mairi martin executive director resources riverside group irvine housing association. Conocophillips main competitors include large oil producers such as. Conocophillips has made a big splash with asset sales over the last few weeks. M 2007 on financial performance of indian manufacturing companies during pre and post merger analyzed 17 companies as a sample out of 58 to study the impact of merger on the performance in indian manufacturing sector from 2000 2002. Merging companies, merging intranets in 2002, phillips petroleum company and conoco completed their merger. Why conocophillips isnt interested in a merger the. Mergers and acquisitions edinburgh business school.
This is a brief general summary of certain terms and conditions of certain plans and is for information purposes only. A glance at any business newspaper or business news web page will indicate that mergers and acquisitions are big business and are taking place all the time. Apr, 2017 conocophillips has made a big splash with asset sales over the last few weeks. Why conocophillips isnt interested in a merger conocophillips ceo ryan lance lays out the case for the companys future growth and why a merger isnt something it sees on the horizon. Du pont to swallow conoco in recordbreaking merger. A vertical merger can impair competition by preventing other companies who use the same suppliers or distribution channels to operate normally. The two companies consolidated in 2002, and now are a formidable competitor in the industry. But in this case, the payoff, if any, will have to come in the form of better performance by a bigger company. Conocophillips closes sale of its interest in greater sunrise fields. Conocos attempted to win an oil development contract in ecuadors tropical rain forest.
Conocophillips to split into two businesses the new york times. With more than 30,000 employees and operations in more than 30 countries, conocophillips is an environmental, social, health, and education leader around the world. Listed below are subsidiaries of the registrant at december 31, 2011. This is the case of conocophillips, whose merger, announced on november 19, 2001, was created to position them to better. This project entails an extensive scope of appendices due to the interviews and other facts included. A case analysis of the conocophillips merger this is an illustrative case analyzing shareholder and accounting outcomes and legal issues resulting from. At the end of last month, the houston oil and gas giant said it was divesting some of its oil sands holdings in. Nomura, on the other hand, is really hierarchical, conservative and preferred moderate. Conocophillips announces pricing of cash tender offer.
Lehmanites were accustomed to a very aggressive, risktaking and quick decisionmaking way of conducting business including a stress on team play. Conocophillips global expatriate policy january 1, 2003 revised august 21, 2006 page 6 of 68 introduction the global expatriate policy applies to international assignments to operations where conocophillips is owner, partial owner, or has managed control. Adidas and reebok merger management case study pdf file. It is the worlds largest independent pureplay exploration and production company and the company ranked no. The ten case studies reveal that communication is a necessity, drastically improving the success of a merger, and a cultural assessment of both fit and potential are important. Application of ue for order authorizing merger, case no. Regulation ec no 92004 the merger regulation of a proposed. Chevron eyeing phillips, conoco board discusses hostile takeover bid the companys board of directors yesterday discussed whether to make a hostile takeover bid for either phillips petroleum co.
The violations occurred when the refinery, which was later sold to delta airlines, was still owned by conocophillips. The term excludes contract employees, both direct and indirect, and those engaged under retainer, counseling, or consulting agreements. While it has never attained the high profile of its larger rivals exxon mobil and chevron, the phillips part of the company was long notorious for the abysmal safety record of its operations in texas, where a. A case analysis of the conocophillips merger this is an illustrative case analyzing shareholder and accounting outcomes and.
The actual recording of the acquisition or merger between conoco and continental oil company is undocumented in many states where each entity hadhas operations. Conoco, phillips shareholders approve oil merger mar. Iclubcentral burlington resources and conocophillips merger. A final consent order allows the merger of phillips petroleum and conoco inc. Conocophillips is an american multinational energy corporation with its headquarters located in the energy corridor district of houston, texas in the united states. Among the assets to be divested are refineries, propane terminals, and natural gas gathering facilities. A culture clash in international merger and acquisition. Technology delivers a competitive advantage conocophillips. Conocophillips to split into two businesses the new york.
Working through a merger riverside group 55,000 housing stock 2,200 employees operate in england english housing regulator english care regulator. Case study mergers and acquisitions strategic management. A merger is a combination of two or more companies where one corporation is completely absorbed by another corporation. For instance, companies with excess funds, searching for ways to grow quickly might be interested in acquiring upstream or downstream suppliers vertical integration, direct competitors horizontal integration, complementary businesses or even unrelated businesses to. The company operates as a jv between exxon mobil corporation. Aug 30, 2002 conocophillips has completed the merger of conoco inc. See case mapped in subject navigator on investorstate lawguide available documents related proceedings phillips petroleum company venezuela limited, conocophillips petrozuata b. Working through a merger riverside group 55,000 housing stock 2,200 employees operate in england english housing.
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