Background: On January 2004, the management at Crown Confectionary, ranking fourth in market share in the confectionary industry, faced the task of advancing its hold to the next level. One of the myriad plans to attain this goal was to acquire Haitai Industries, which was owned by a consortium led by UBS, a Swiss investment bank, as a consequence of its financial instability in the late 1990s.
The acquisition was deemed an ideal strategy, with expectations for synergies in economies of scale and enhancement of brand value in the midst of an ever-competitive confectionary industry. However, this move would not come without risk. The capital required to acquire a corporation whose assets and revenues were twice its own was beyond something negligible. Click here to read more on Crown-Haitai M&A…
