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Bombardier Transportation and the Adtranz Aquisition Case Analysis

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BOMBARDIER TRANSPORTATION AND THE ADTRANZ AQUISITION CASE ANALYSIS

Prepared by: Samuel C. Anyanwu
Date of Submission: February 17, 2015.
Submitted to: Prof Dr. Kelly Thompson.

Bombardier Inc. (BBD) had over the years built a well diversified and versatile business in order to reduce cyclical risk, ensure long term survival and redefine the company’s position on a global scale. The route taken to achieve this level of diversification was through strategic acquisition of key players in the industry that complimented BBD’s vast business ventures.
BBD’s growth philosophy was to seek acquisitions that enabled the company to apply exiting competencies without focusing solely on financial gains but more on how acquired companies would complement and strengthen its existing businesses. BBD’s philosophy also centered around being patient to bring about seamless integration of acquired companies with the aim of eliminating waste and turning around underperforming assets through its application of effective and efficient management approaches. [ (BOMBARDIER & ADTRANZ AQUISITION CASE) ]
BBDs kin approach to integration of acquired companies enabled greater combination potential as this approach brought about strong employee support because there was the belief that BBD would protect jobs and invest in new product lines. BBD’s approach to integration was seen in the acquiring of Adtranz despite the fact that the company agreed to a limited due diligence process for the deal to go through. The agreement to a limited due diligence process was due to the fact that there were great strategy and business similarity between the two companies and Adtranz was working to streamline its operations and this was a concept that BT was willing to buy into. The integrative model taken by BBD defines how synergy realization is possible when there are similarities between the…...

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