Cultural Integration in Mergers &Acquisitions –A Brief note on Acquisition of Mind tree by Larsen & Toubro and Emerging Horizons

Abstract

Mergers and Acquisitions (M& A) have become quite common since the ‘Nineties in India. M& A creates a paradigm shift for the Acquirer while initiating the takeover or the acquisition over the target company. Acquisitions can be friendly as well as hostile. A friendly acquisition is identified when controlling group of the target company sells its shares to another group wilfully. A hostile takeover is the acquisition of one company (called the target company) by another (called the acquirer) that is accomplished by going directly to the company's shareholders or fighting to replace management to get the acquisition approved. There have been very few instances of hostile takeovers in the Indian corporate history.
In this case study, it is proposed to examine the recent acquisition of Mindtree (MT), an IT maverick by Larsen & Toubro (L&T), an engineering & infrastructure giant. The case study begins with profiles of the respective companies L&T and MT. In the second part the acquisition of MT by L& T is unfolded in a story form. Third part discusses the aspects of the cultural fit in the integration of the two companies L&T & MT. Our study concludes with the emerging horizons of the cultural integration and survival of the two corporate to prepare a plan for a ‘strategy supportive culture ‘.