Early Entry and Aggressive Growth: Kraft foods Lietuva

Strategic similarity and acquisition outcomes at the target: Evidence from China’s beer industry

“…In their studies of acquisitions involving private technology firms, Graebner and Eisenhardt (2004) found that the seller plays an active role in the acquisition process by selecting desirable buyers that offer long-term strategic fit and organizational rapport. Similar phenomena were found in acquisitions in Eastern European countries (EECs) (Antal-Mokos and Toth, 2007;Darskuviene, 2007). Zeng et al (2013) highlighted the determinant role played by sellers in acquisitions in China due to the fact that firms are either stated owned or not publically traded.…”

“…This result may reflect the contextual feature that the target's growth prospects are a key determinant of the seller's decisions concerning the acquisition (e.g. whether to sell and to whom) in emerging markets (Antal-Mokos and Toth, 2007;Darskuviene, 2007). This contextual feature may lead to an emphasis on achieving revenue growth through combining with competitively dissimilar firms.…”

“…Specifically, a negative relationship between the two will likely be observed when the acquisition is mainly driven by revenue growth, whereas a positive relationship will be likely when the acquisition is driven by cost savings. Studies of acquisitions involving non-publically traded and state-owned firms show that the seller's decisions about whether to sell and to whom are affected by the target's future growth prospects (Antal-Mokos and Toth, 2007;Darskuviene, 2007;Graebner and Eisenhardt, 2004). Given that our research context is China, where the majority of firms are either state-owned or not publically traded, we expect that revenue growth is likely to be emphasized during the negotiation and integration process (though cost savings may still be pursued whenever possible).…”

“…supervising government, labor unions, and in some cases, managers) will continue to be affected by the target's operations post-acquisition, their selling decision (e.g. to whom to sell and under what conditions) is often driven by the target's long-term prospects rather than receiving the highest selling price (Antal-Mokos and Toth, 2007;Darskuviene, 2007;Meyer, 2002;Sheng, 1999;Uhlenbruck and De Castro, 1998). Furthermore, the target's stakeholders may also impact on its post-acquisition operations.…”

The Seller's Perspective on Determinants of Acquisition Likelihood: Insights from China's Beer Industry

“…Meyer, ; Uhlenbruck and De Castro, , ) have demonstrated that in acquisitions of SOEs, the government as the seller often pursues social objectives such as employment and local economic development. Studies of acquisitions of privatized firms by international firms also show that the seller embraces objectives concerning the firm's future prospects rather than only focusing on the selling price (Antal‐Mokos and Toth, ; Darskuviene, ).…”