A PRESENTATION MADE BY STUDENTS OF GROUP 12

DuPont’s CEO on Executing a Complex Cross-Border Acquisition

ARTICLE OVERVIEW

Case Issue

Executives at DuPont worked for 6 months on the $ 7 Billion acquisition of Denmark’s Danisco

Case Highlights

Challenges in implementing a Cross Border AcquisitionEnsure Proper Integration between DuPont and Danisco Getting Synergies out of the Acquisition

DUPONT CORPORATION

Agriculture, Food and

Biosciences 6%

Agriculture, Food and Biosciences

33%

1996$43,810 Million Sales Into Major Markets

2011$37961Million Sales Into Major Markets

1996$43,810 Million Sales Into Major Markets

Coatings

5%

Coatings

11%Chemicals

11%

Advanced Materials

18%

Textile Fibres

14%

Petroleum

33%

Chemicals

20%

Advanced materials

36%*Founded as a 200 Year Old Chemical Company

*Enhanced focus towards Bio-Sciences as part of their strategy* Evolving Portfolio of Businesses along with changing Industry Dynamics*Focus towards Organic Growth towards the Mid-2000’s

*Resilient in the Economic Recession on 2008

*Looked to achieve linear and organic growth through Mergers, Acquisitions and Joint Ventures

THE DUPONT WAY

Keep All Deals Close

• Executives must never be passionately overrun by any deal• Executives must always look at value creation to the company and the

price they are paying for that value• Ensure Cultural Fit – Post Integration Problems• Understanding of Business in critical – Segments, Market Shares,

Dynamics of Competition

Have a Long-Term View

• Acquisition is only the first step – Regulatory Barriers existed in completely acquiring Danisco

• Understand true value the acquisition brings to the firm – This may increase premiums paid to acquire the firm

Integration and Synergy

• Chart out an integration plan for all departments• Plan for Labour redundancy and plan for their redeployment• Communication to the employees the vision and the goals of the firm and

ensure their employment security

THANK YOU