In 2001, after the Tata Tea the giant Tetley took over in a leveraged buyout, she was presented with problems: It was the arrangement of vertical integration synergies, but the leveraged buyout structure meant cultural differences and lack of planning that the realization of synergies was delayed. The difficulties were exacerbated by the cyclical downturn in the tea industry and the increasing competition from substitute products. The purpose is to illustrate this: (1) problems associated with c … Read more »

In 2001, after the Tata Tea the giant Tetley took over in a leveraged buyout, she was presented with problems: It was the arrangement of vertical integration synergies, but the leveraged buyout structure meant cultural differences and lack of planning that the realization of synergies was delayed. The difficulties were exacerbated by the cyclical downturn in the tea industry and the increasing competition from substitute products. The purpose is to illustrate this: (1) problems associated with cross-border merger integration, (2) the vertical integration makes sense and when not to, (3) the application of PMI framework and concepts, (4) the problems with a leveraged buyout associated structure, and (5) the case of the winner’s curse
.
«Hide

from
L.J. Bourgeois,
Rajsaday Dutt
Avin Dwivedy
Source: Darden School of Business
11 pages.
Release Date: 13 December 2004. Prod #: UV1636-PDF-ENG
Tetley and Tata Tea Ltd., PLC A HBR case solution