The merger & Analysis
The merger is beneficial to many parties. The merger was done to synergize the market share of both companies. The merger would create a new company that would catapult itself to be the new world leader in terms of the biggest offshore oil and gas production. The synergy would give the new company an eighty percent output in the Norwegian North Sea environment. The merger of the two Hydro companies would overtake Royal Dutch Shell as the world’s top offshore oil production company. The merger would be a harmonious one as both companies have been expanding their oil and gas exploration activities to reach the international markets.
The merger will catapult Norway its third place to first place(“Offshore Fuel Firms in Pounds 15bn Merger. “,25). Research shows that this merger is influenced because the government owns shares in both Norsk and Statoil, nationalism and inadequate domestic finance(Pedersen, and Thomsen,1). CONCLUSION and RECOMMENDATION Conclusively, the merger is beneficial to most parties involved. The tension brought about by the merger has been diffused. The stock prices of the shares of stocks have increased. The Norway government supports the merger. Employees of both companies benefit from the synergy.
It is highly recommended that further studies be done to pinpoint the strategies needed to take advantage of the merger –caused opportunities.
“Offshore Fuel Firms in Pounds 15bn Merger. ” The Journal (Newcastle, England) 19 Dec. 2006: 25. Timmons, Heather, “Statoil Will buy Rival’s Energy Units to Create World’s Largest Offshore Operator”, The New York Times (New York), 1 October , 2008: 1 Pedersen, Torben, and Steen Thomsen. “European Patterns of Corporate Ownership: A Twelve-Country Study. ” Journal of International Business Studies 28. 4 (1997): 759+.