Strategic Aspects of an M&a Transaction - the Merger of Allianz Se and Dresdner Bank Ag in the Year of 2001
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- Category: Politics: Economics
- Date Submitted: 07/13/2010 03:35 AM
- Pages: 20
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Introduction
The merger of Allianz and Dresdner Bank in the year of 2001 is considered to be one of the most famous M&A-transactions in Germany. It has been discussed for a long time. The “Allfinanz” concept, Allianz has realized through the merger, is the answer to changing customers demands. After the “Riester-Rente” has been introduced the market of investment funds shows a great potential. Furthermore enormous economies of scope have been forecasted. But many financial aspects of the merger have falsely been calculated. In the year of 2002 the Allianz Group has been in the red for the first time of the company´s history. Investors have been skeptic about the future development and this is why it is always been under great public interest. Although Allianz did not make a financial deal merging Dresdner Bank, this transaction significantly supported the establishment of the market position comparing to business rivals like Deutsche Bank or Münchner Rück.
Because Allianz acts as a leading investor in the uprising market of global players, this paper emphasizes on the strategic aspects of the merger. After it has portrayed the merger chronological this paper also deals with issues concerning the valuation.
1. Companies involved
1.1 Allianz SE
The Allianz Group, founded 1890 in Berlin, is considered as the biggest insurance company of Europe. 18 Million customers in Germany and more than 60 Million customer worldwide as well as half of the World´s biggest companies rank among the clientele of the Allianz. The company is affected by a very traditional management style enforced by Chief Executive Officer (CEO) Dr. Henning Schulte-Noelle, who is in charge since 1991. From that point onwards he has been preparing the company for the new challenges a company has to face in the market of the uprising “Global Players”. In 1999 English became the corporate language whereas Europe still is the most important trading center, holding a share of 80% in the...
The merger of Allianz and Dresdner Bank in the year of 2001 is considered to be one of the most famous M&A-transactions in Germany. It has been discussed for a long time. The “Allfinanz” concept, Allianz has realized through the merger, is the answer to changing customers demands. After the “Riester-Rente” has been introduced the market of investment funds shows a great potential. Furthermore enormous economies of scope have been forecasted. But many financial aspects of the merger have falsely been calculated. In the year of 2002 the Allianz Group has been in the red for the first time of the company´s history. Investors have been skeptic about the future development and this is why it is always been under great public interest. Although Allianz did not make a financial deal merging Dresdner Bank, this transaction significantly supported the establishment of the market position comparing to business rivals like Deutsche Bank or Münchner Rück.
Because Allianz acts as a leading investor in the uprising market of global players, this paper emphasizes on the strategic aspects of the merger. After it has portrayed the merger chronological this paper also deals with issues concerning the valuation.
1. Companies involved
1.1 Allianz SE
The Allianz Group, founded 1890 in Berlin, is considered as the biggest insurance company of Europe. 18 Million customers in Germany and more than 60 Million customer worldwide as well as half of the World´s biggest companies rank among the clientele of the Allianz. The company is affected by a very traditional management style enforced by Chief Executive Officer (CEO) Dr. Henning Schulte-Noelle, who is in charge since 1991. From that point onwards he has been preparing the company for the new challenges a company has to face in the market of the uprising “Global Players”. In 1999 English became the corporate language whereas Europe still is the most important trading center, holding a share of 80% in the...