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Case Study

Nestlé-Rowntree (A)

By Peter J. Killing, James C. Ellert and Dana G. Hyde

32 pages

August 1990

Reference: IMD-3-0423

Nestle SA is the world’s largest food company; its acquisition of Rowntree Plc in 1988 was, at L 2.5 billion, the largest-ever foreign takeover of a British company. The case is the first in a three-part case series positioned before, during, and after the acquisition of Rowntree by Nestle, and gives an ‘inside look’ at a major international acquisition. The (A) case includes a note on the world chocolate industry, and ends at the point when Nestle must decide whether to launch a hostile bid for Rowntree. The case is written from Nestle’s point of view, and provides the opportunity to consider the benefit of various acquisition possibilities in the industry. The case also raises questions as to why Rowntree became a takeover target, and as to Nestle’s policy of not making hostile takeovers.

Keywords

Organizational Structure, Chocolate

Settings

Europe
Nestlé
1988

Type

Field Research

Available Languages

English

Related material

Teaching note, Video

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This case study is part of a series

1997 ECCH AWARD WINNER (Policy & General Management)

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1990 EFMD AWARD WINNER (Mergers & Acquisitions)

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Reference IMD-7-2578

Organization Unilever

Industry Consumer Goods

Available Languages English

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