Acquisition of International Power in UK by Gaz de France

Acquisition of International Power in UK by Gaz de France Essay example
Masters
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Finance & Accounting
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This is a comprehensive report that critically analyses the acquisition and otherwise merger between International Power, a United Kingdom based company and Gaz de France, based in France…

Introduction

Mergers have been one of the most effective options for companies seeking growth and expansion. This is because merger has the potential of ensuring rapid and speedy turnovers in terms of the revenue, market size customer base and physical infrastructure of a company. This however does not mean that mergers are free from challenges. In this report, it was not the merits of the merger between International Power and Gaz de France that are reviewed but also any challenges that the companies involved must look out for. This is preceded with a detailed description of both companies. This description is very necessary for this report because it is only after having a detailed understanding of the companies involved, their history, their mission and vision, their strategic plans, and of course their projected growth rate that the merger that has taken place can best be analysed in the interest of both companies. Comprehensive macro analysis is also conducted for both companies as this is also necessary in judging the economic viability of the merger. Finally, there is a detailed scrutiny of the valuation of the merger. The valuation was done in comparison with not only the macro economic factors outlined earlier but with other micro economic factors such as project depreciation rates, projected inflation rate and projected interest rates are concerned. ...
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