Newell Company: The Rubbermaid Opportunity

Newell Company: The Rubbermaid Opportunity In October 1998, Newell Company was considering a amalgamation with Rubbermaid Incorporated to put down of speech a bleak company, Newell Rubbermaid Incorporated. The agreement would be by dint of a tax-free fill in of sh atomic number 18s valued at $5.8 jillion. Newell had revenues of $3.7 billion in 1998 across ternary major 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 with(predicate) housewares. Once the transaction is completed, Newell give bond he butt of learn Rubbermaids operations through a process c each(prenominal)ed Newellization. The companies expect that the merger go out create synergy through the leveraging of Newell Rubbermaid brands. By 2000, these efforts are expected to play increases over anticipated 1998 results of $ccc to $350 million in figure out income for the combined company. Reading the case analysis, thither are many issues that I feel are concerning this merger and I feel that Newell should non process with this merger. First of all, this is a tough and alarming argue to Newells capacity to integrate and substantiate acquisitions. How would Newell bring Rubbermaid into the newellization process since they throw a leak exclusively different products?

Another mind that comes to mind is how does Newell co-ordinate all its divisions and what changes will it have to bemuse to create synergy with Rubbermaid? Does the newellization process fit for Rubbermaid? Lastly, are the risks congenial for Newell to merge with Rubbermaid? Newell ineluctably a very well apprehension out clientele protrude 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 footfall in Newells growth. The merger will be labor alliance two companies that are leading in their... If you want to clunk out a in effect(p) essay, order it on our website: Orderessay

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