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Case Study

Dealing with differences: Sinopec's acquisition of Addax Petroleum (B)

By Margaret Cording and Winter Nie

5 pages

October 2013

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Reference: IMD-3-2406

One year after Sinopec Group’s acquisition of Addax Petroleum, Zhang Li has been appointed Chief Executive Officer. The post-merger integration has not gone well, with employee productivity significantly lower and employee turnover at a startling rate of 18%. Zhang, along with Marie-Gabrielle Cajoly, corporate head of communications and corporate social responsibility at Addax Petroleum, have identified cultural divisions as a key cause of these troubles. Zhang and Cajoly must design a set initiatives to close the numerous cultural gaps.

Learning Objective

To explore issues involved in managing the post-merger integration process, particularly in the context of an acquisition of a developed country company by a company from an emerging market. Provides an opportunity for students to wrestle with how to approach cultural integration and to ensure the transfer of knowledge.

Keywords

Post-merger Integration, Oil

Settings

China
2009 - 2013

Type

Field Research

Available Languages

English

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