Why Was Adtranz an Attractive Acquisition for Bombardier? What Are the Arguments Against an Acquisition?

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on my sectors such as aerospace or transportation because it allowed it to master several technologies. Also it will raise companys’ reputation because the industry known for being able to innovate and constantly develop new products. from there, it will raise the ability to generate cash to finance other firms because it will show to investor that this company is a sustainability of firms. Also because Adtranz is one of the biggest rail industry, it gives privilege to Bombardier to merge it company to a well-sustained company which will become an asset because existing staff can share their knowledge and experience one way to another.

3. What Should Lortie do, assuming the deal receives approval from the European Commision? Should he essentially leave it as a stand-alone entity? Should he absorb it into BT? Are hybrid approaches available?

The company has several options about this. First, Adtranz can opt for integration. There are advantages attached to this option, such as the capacity to adapt quickly, the cover of more activities, the ad of competencies but also the association with the brand image of BT, which is very strong. Of course it will be complicated because both companies have opposite structures. For example, BT has five geographically based operating units and only one market unit whereas Adtranz products segment and functions.

Second, the company can choose to stay alone. Again, this choice implicates different advantages such as a new know=how which will be beneficial for innovation, the fact that BT lacks of expertise in propulsion system (and adtranz can bring that to the company). But these two companies have no common culture which will make everything fmore complicated especially the relations between employees. Moreover the question of the responsibilities will be the tough one. Of course, corporate law frames the allocation of responsibilities but we must take into account the negotiation power or the companies.

Finally, Adtranz’s future will be mainly depend on the management choice from Bombardier.