BUSI4H315 Mergers and Acquisitions (MSc Management)

SUMMATIVE ASSIGNMENT
Please answer all questions in both Sections A and B
Section A
Analyse three Mergers:
Fiat Chrysler and Peugeot, Microsoft and Nokia, Google and Nest Labs
Discussion Questions. All questions carry equal marks:
1) Recently Fiat Chrysler and Peugeot agreed to merge for nearly $50 billion. Analyse the
possible ways of financing such a big deal, compare and speculate on the best possible
option. Do you think the deal will be successful? Why / Why not?
2) Nokia, a Finnish-based award-winning smartphone company, was acquired by
Microsoft in 2013 for US$7.2 billion. A few months later, in 2014 Google acquired Nest
Labs for about $3.3 bn. In the context of M&A, synergy represents the incremental cash
flows generated by combining two businesses. Identify the potential synergies you
believe could be realized in Google’s acquisition of Nest and in Microsoft’s acquisition of
Nokia. Speculate as to whether these acquisitions were successful or not. Please use the
relevant literature discussed in the course when applicable to strengthen your
arguments. Explain the rationale for your answer.
[50 marks]
BUSI4H315 Mergers and Acquisitions (MSc
Management) 2019/2020 Masters Programmes
2019/2020 Masters
Programmes
© 2020 Page 2
Durham University Business School
Section B
Kraft-Heinz vs Unilever Takeover Battle
On the 16th of February 2017, US food company Kraft-Heinz backed by three Brazilian
billionaires and US investor Warren Buffet, made an offer of $143bn to takeover Unilever
in what could be the second largest merger in corporate history, after the $183bn
takeover of Mannesmann by Vodafone in 2000. Unilever, an Anglo-Dutch company, is one
of the largest firms listed in Britain and owns well-known brands including Persil, Dove
soap, Ben & Jerry’s ice cream, Pot Noodle, and Marmite. The offer was $50 a share cash
and stock offer, and represented -at that time- an 18% premium to the closing price.
However, Unilever rejected the offer. Unilever has a stable of well-known brands but sales
have suffered in some big emerging markets.
Discussion Questions. All questions carry equal marks:
1. Suppose that you are the Chief Executive Officer in Kraft-Heinz in February 2017,
critically provide a convincing analysis to your shareholders to explain the
motivation, and the synergies (i.e. strategic and financial reasons) behind the offer
made to acquire Unilever. To strengthen your arguments use the financial statements
of the previous years (till 12/2016) and the relevant literature discussed in the class.
2. In your opinion, why Kraft-Heinz offered a mix of cash and stocks to acquire Unilever,
and not only cash or only stocks? Do you think Kraft-Heinz should make a higher
offer? Why/Why not? Use the relevant literature discussed in the course to strengthen
your arguments.
[50 marks]
Overall word limit, 2,500 words maximum.
The word count should:
BUSI4H315 Mergers and Acquisitions (MSc
Management) 2019/2020 Masters Programmes
2019/2020 Masters
Programmes
© 2020 Page 3
Durham University Business School
 Include all the text, including title, preface, introduction, in-text citations, quotations,
footnotes and any other item not specifically excluded below.
 Exclude diagrams, tables (including tables/lists of contents and figures), equations,
executive summary/abstract, acknowledgements, declaration, bibliography/list of
references and appendices. However, it is not appropriate to use diagrams or tables
merely as a way of circumventing the word limit. If a student uses a table or figure as
a means of presenting his/her own words, then this is included in the word count.
Examiners will stop reading once the word limit has been reached, and work beyond this point
will not be assessed. Checks of word counts will be carried out on submitted work, including
any assignments or dissertations/business projects that appear to be clearly over-length.
Checks may take place manually and/or with the aid of the word count provided via an
electronic submission. Where a student has intentionally misrepresented their word count, the
School may treat this as an offence under Section IV of the General Regulations of the
University. Extreme cases may be viewed as dishonest practice under Section IV, 5 (a) (x) of
the General Regulations.
Very occasionally it may be appropriate to present, in an appendix, material which does not
properly belong in the main body of the assessment but which some students wish to provide
for the sake of completeness. Any appendices will not have a role in the assessment –
examiners are under no obligation to read appendices and they do not form part of the word
count. Material that students wish to be assessed should always be included in the main body
of the text.
YOUR COMPLETED ASSIGNMENT MUST BE SUBMITTED TO DUO NO LATER THAN
11.59AM ON 7 MAY 2020
MARKING GUIDELINES
BUSI4H315 Mergers and Acquisitions (MSc
Management) 2019/2020 Masters Programmes
2019/2020 Masters
Programmes
© 2020 Page 4
Durham University Business School
Performance in the summative assessment for this module is judged against the following
criteria:
 Relevance to question
 Organisation, structure and presentation
 Depth of understanding
 Analysis and discussion
 Use of sources and referencing
 Overall conclusions
Students should use the template on DUO for their assignments.
The word count should include all the text (plus endnotes and footnotes), but exclude
diagrams, tables, bibliography, references and appendices. Guidance on referencing can be
found in your Assessment handbook under ‘Things you Need to Know’ on DUO.
The assignment which you submit on-line should INCLUDE all appendices and extracts from
the companies’ financial statements.
PLAGIARISM and COLLUSION
Students suspected of plagiarism, either of published work or work from unpublished sources,
including the work of other students, or of collusion will be dealt with according to Business
School and University guidelines.
Your assignment will be put through the plagiarism detection service.

Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"