Birmingham Business School
MBA International Business 2005/06
07 15442: INTERNATIONAL BUSINESS FINANCE
Lecturer: Dr John Cadle:
Cross Border Acquisitions:
When Saint-Gobain acquires BPB
Student ID: 797300
Length: Approx.3000 words
OUTLINE
Executive summary
P3
Introduction: When Saint-Gobain acquires BPB
P4
Synergies thought to be gained from such acquisition
P5
? Operational synergies P5
? Financial synergies P7
The valuation of such acquisitions ( methods and problems)
P9
? Valuation of the current value of the target company. P10
? Problem: the valuation of the potential synergies to be gained P11
Conclusion
P12
References
P13
Appendixes
P15
Executive summary
By the end of 2005, Saint-Gobain, a French leading producer, processor and distributor of materials, acquired for ?5.8 billion the company BPB, British Plastic Boarder, the English leader in plasterboard: This acquisitionwill allow the French Company to become the world leader in building interior solutions.
The motive of this acquisition, as for any M&A, is to take advantage of the synergistic benefits to increase the company share value. In fact, there are multiple synergies to be gained from such acquisition: These synergies could be divided into operation synergies and financial synergies: While operational synergies mostly affect the operations of the combined firms and generally ...