Case | HBS Case Collection | November 1996 (Revised March 2001)

Sime Darby Berhad (A): 1995

by Tarun Khanna, Michael Y. Yoshino and Danielle J. Melito

Abstract

Sime Darby is one of South Asia's largest regional conglomerates. In 1995, it is contemplating entry into the fast-growing financial services sector in Malaysia through the acquisition of a Malaysian bank. This is in keeping with its activities mirroring those of the Malaysian economy. The case discusses whether to proceed with the acquisition. Exposes the underlying sources of value creation of the conglomerate in the institutional context, which affect the costs and benefits of broad corporate scope, especially the evolving capital market and the tight interrelationship between business and politics.

Keywords: Acquisition; Business Conglomerates; Economy; Capital Markets; Emerging Markets; Business and Government Relations; Corporate Strategy; Value Creation; Financial Services Industry; Malaysia;

Citation:

Khanna, Tarun, Michael Y. Yoshino, and Danielle J. Melito. "Sime Darby Berhad (A): 1995." Harvard Business School Case 797-017, November 1996. (Revised March 2001.)