Two Johns Are Always Better Than One

Mulcahy asserts, “The enhanced product offering will create a market leading service and product mix.” The deal promises synergies of $174 million per annum. Interestingly, a ‘poison pill’ was included to ‘protect’ Suncorp itself from being taken over! The clause said that any company seeking to acquire Suncorp in the course of the merger going through, would have to acquire Promina too. Shane Fitzgerald, Insurance Analyst, JP Morgan points out, “Suncorp will benefit from access to the New Zealand market. In addition, the deal will increase customer base to over 8 billion.” Benefits are evident, but the most critical challenge will be overlapping businesses of wealth management & general insurance. The two “Johns” must ensure there is no cannibalisation. In fact, the two companies must contemplate using the enhanced portfolio to target new markets. No denying to the fact that with proper planning, two Johns are always better than one!

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Source:- IIPM-Business and Economy, Initiative:- Prof. Arindam Chaudhuri - 2006