Lingyun Acquires GSB (A)
Code
CC-308-011
Date
2008
Industry
Hospitality & Tourism
Length
14 Pages
Author(s)
Fu Xin; Steven White
Language
English
Company
Lingyun
Source
CEIBS
Discipline
Finance & Investment,Strategy & General Management
Key Words
Acquisition; China; Integration; Strategy; Culture; Diversified firm; Corporate strategy; Implementation; Execution
Description
Lingyun, a major state-owned enterprise and diversified conglomerate based in Shenzhen, China, targeted commercial property development and management as a focus of its future growth. This case documents the process leading up to Lingyun's acquisition of a major 5-star hotel, office and retail complex in the neighbouring city of Guangzhou. The case provides the basis for discussing fundamental strategic issues related to mergers and acquisitions: (1) opportunity generation; (2) acquisition rationale; (3) target assessment; and (4) deal structuring. It also highlights the complexity of such acquisitions in China, as the process involved multiple branches of the city, provincial and central government, Lingyun's own parent and subsidiary companies, and regulations in both China and Hong Kong. This is the first of a two-case series (CC-308-011 and CC-308-012).
Case Sample
