This paper investigates the potential acquisition of Meyer Burger Technology AG, a Swiss solar panel manufacturer, by Daimler AG, a German automotive manufacturer. The study includes an in-depth analysis and stand alone valuation of both companies and their respective industries to estimate their fair value after considering historical, current, and future business dynamics. The objective is to determine the value of the combined entity, establish a purchase price for the target, and decide whether the deal would be value creative or value destructive to the companies. The value of the combined entity after accounting for synergy effects is €277 billion, suggesting a synergy value of €11 813 million. Given a takeover premium of 30%, the purchase price ofthe target firm would be €1 275 million, about €293 million above their current market value as of August 13th, 2021. The offer would be fully financed with cash and would give shareholders of the acquiring company a value capture of €11 743 million.
|Date of Award
|21 Oct 2021
- Universidade Católica Portuguesa
|António Borges de Assunção (Supervisor)