Like a good marriage, two companies can combine and become more than the sum of their parts. Many factors go into a successful merger, including senior teams that can work well together, shared values and an understanding of each other’s business culture. Employees, stock owners and other stakeholders also need reassurance along the way as the companies enter unknown territory.
Here are five mergers where the companies got it right.
WellPoint and Anthem
Back in 2004, Anthem Inc. of Indianapolis and the Thousand Oaks, California-based WellPoint Inc. underwent a $16 billion merger. For 10 years, the two used the Wellpoint name, but have recently switched to Anthem. Both companies had a long history of successfully acquiring smaller companies. The giant’s cost-saving strategies have endeared the company to its stockholders.
Disney & Pixar
Many millions of movie-goers and toy lovers have benefited from the Disney/Pixar merger. Children and adults alike love Finding Nemo, Toy Story and WALL-E. Frozen is one of the highest-grossing movies of all time. Between Pixar’s moviemaking talent and Disney’s marketing expertise, these two companies are one winning combination.
Sirius & XM radio
Have you noticed that most new cars arrive on the lot with SiriusXM pre-installed? Ever since the rivals joined forces in 2008, they managed to override the FCC’s monopoly clause and soar to great audio and financial success.
PepsiCo and Quaker Oats
With an obesity epidemic in full swing, what’s a company most known for its sugary drinks to do? Merge with a company whose lead product lowers cholesterol and is practically synonymous with wholesome goodness. In 2001, PepsiCo bought Quaker for $13.6 billion. Since then, there’s no stopping this food and drink industry powerhouse, which knows how to light up the snack aisles with its marketing genius.
JP Morgan and Chase
Dating back to 1799 and 1871 respectively, Chase and JP Morgan have more than 300 years of combined banking expertise. In that time, the two have folded in more than 1000 regional and national financial institutions. The two banking powers merged in 2000, after already incorporating Manufacturers Hanover and First Chicago Corp into the fold. Since then, the company continues its acquisitions, including Bank One in 2004 and Bear Stearns Companies, Inc. in 2008.
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