This case describes the sequence of events relating to shareholder objections to the proposed merger between Volvo and Renault. The proposed merger was preceded by a strategic alliance, the industrial logic for the merger seemed reasonable. The task for the students is to assess why the shareholders opposed the merger, which Volvo Board to withdraw the merger proposal. The most important factor was the presence of an unusual control option to the French government granted the r … Read more »

This case describes the sequence of events relating to shareholder objections to the proposed merger between Volvo and Renault. The proposed merger was preceded by a strategic alliance, the industrial logic for the merger seemed reasonable. The task for the students is to assess why the shareholders opposed the merger, which Volvo Board to withdraw the merger proposal. The most important factor was the presence of an unusual control option, the French government granted to the proposal Unfit for Swedish shareholders. Other factors include cultural differences and enmity against extravagant chair Volvo’s Pehr Gyllenhammar. This case, the companion case may be taught alone or as an epilogue, “AB Volvo / Director of the National Usine Renault SA”
This is a Darden case study.
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from
Robert F. Bruner
Source: Darden School of Business
13 pages.
Release Date: 02 March, 1995. Prod #: UV0461-PDF-ENG
Volvo / Renault: The competition for shareholder approval HBR case solution

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