Case | HBS Case Collection | January 1987 (Revised May 1989)

Merck-Banyu

by Timothy A. Luehrman

Abstract

Merck acquired control of Banyu in 1983. This was the first acquisition by outsiders of a major publicly traded Japanese company. This case is focused on valuing strategic investments in an environment of global competition. The case is complex because of the competitive structure of the industry, the international scope of the players, and the necessary involvement in the deal of government regulators from multiple jurisdictions and agencies. Forces students to confront several different valuation methodologies that give conflicting results.

Keywords: Acquisition; Investment; Globalization; Governing Rules, Regulations, and Reforms; Industry Structures; Negotiation Deal; Public Ownership; Competition; Valuation; Japan;

Citation:

Luehrman, Timothy A. "Merck-Banyu." Harvard Business School Case 287-061, January 1987. (Revised May 1989.)