Business Case Studies, Strategy Case Study, Mergers, Acquisitions, Alliances and Synergies

print page
Tell A Friend
Bookmark

Mergers, Acquisitions, Alliances and Synergies Case Study

IBS CDC IBS CDC IBS CDC IBS CDC RSS Feed
Case Title:

Origin Energy’s Merger with Contact Energy: In Quest Of Greater Scale and Diversity

Publication Year : 2006

Authors: Supriyo Bose, Kumar Satyaki Ray

Industry: Energy

Region: Australia Newzeland

Case Code: MAA0103K

Teaching Note: Not Available

Structured Assignment: Not Available


OR





Abstract:

In February 2006, the energy industry in Australia witnessed a sea change when Origin Energy Ltd., the leading Australian energy company, decided to merge with Contact Energy Ltd., New Zealand’s second largest electricity generator. The cross-border merger created Australia’s largest integrated energy group with a market capitalisation of A$7 billion. The merger took place by way of dual-listed company structure and aimed to benefit both the shareholders by creating grater scale and diversity.

The case, while providing a broad overview of the two energy companies, offers scope to discuss the synergies of the merger and the probable payoffs.

Pedagogical Objectives:

  • To understand the dynamics of a cross-border merger
  • To discuss the synergies associated with a merger with specific reference to Ansoff’s Product/Market Mix
  • To understand the dynamics of the energy sector in Australia and New Zealand
  • To understand the dynamics of a Dual Listed Company (DLC) structure
  • To discuss the convergence in the energy market and its impact on the global business environment.

Keywords : Mergers,Acquisitions,Alliances Case Study;Origin Energy Ltd; Contact Energy Ltd; Dual-listed company; Integrated Energy Group; Merger; Australia; New Zealand; Merchant plants; Contract plants; Co-generation; Synergies; National electricity market

Contact us: IBS Case Development Centre (IBSCDC), IFHE Campus, Donthanapally, Sankarapally Road, Hyderabad-501203, Telangana, INDIA.
Mob: +91- 9640901313,
E-mail: casehelpdesk@ibsindia.org

©2020 - 25 IBS Case Development Centre. All rights reserved. | Careers | Privacy Policy | Terms of Use | Disclosure | Site Map xml sitemap