Newell Company: The Rubbermaid Opportunity

Newell Company: The Rubbermaid Opportunity In October 1998, Newell Company was considering a nuclear fusion with Rubbermaid Incorporated to figure of speech a new company, Newell Rubbermaid Incorporated. The promise would be through a tax-free exchange of sh bes wanted at $5.8 billion. Newell had revenues of $3.7 billion in 1998 across three study product groupings: Hardware and shoes Furnishings, Office Products, and Housewares. Rubbermaid is a renowned manufacturer of a broad(a) range of plastic products ranging from childrens toys through housewares. in one parapraxis the transaction is completed, Newell will baffle he process of absorb Rubbermaids operations through a process called Newellization. The companies expect that the nuclear fusion will create synergism through the leveraging of Newell Rubbermaid brands. By 2000, these efforts are expected to suffer increases over anticipated 1998 results of $ three hundred to $350 million in operate income for the combined company. Reading the case analysis, there are many issues that I feel are concerning this merger and I feel that Newell should not process with this merger. rootage of all, this is a tough and alarming altercate to Newells capacity to fuse and strengthen acquisitions. How would Newell bring Rubbermaid into the newellization process since they take a give away completely different products?

Another question that comes to mind is how does Newell get up all its divisions and what changes will it have to make to create synergism with Rubbermaid? Does the newellization process fit for Rubbermaid? Lastl y, are the risks acceptable for Newell to me! rge with Rubbermaid? Newell of necessity a very well thought out condescension plan and has to answer these questions before they proceed. There are advantages and disadvantages in this merger. I will start with the advantages. If this merger goes through, it will be a quantum step in Newells growth. The merger will be labor union two companies that are leaders in their... If you want to pick out a full essay, holy order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay