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Case Study

Kvaerner acquires Trafalgar House: Eric Tonseth leads Kvaerner in Viking raid

By Stewart Hamilton and Anne-Valérie Ohlsson

28 pages

December 2000

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Reference: IMD-1-0182

The Kvaerner case concerns the agreed acquisition by a Norwegian company of a UK based conglomerate with a very poor track record. The effect is to double the size of the enterprise, both in turnover and employment terms. The issues are post merger integration, synergy capture, cultural conflicts and management capacity. Other concerns are the price paid, the way in which the deal was financed, and the pressures to achieve an orderly asset disposal program. In addition, the question of investor relations becomes important, particularly Kvaerner’s strategy of growth by acquisition.

Keywords

Integration Plan, Management Capacity, Valuation, Deal Structure, Ship Building, Construction

Settings

April 1996

Type

Published Sources

Available Languages

English

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