Deadly Sins of International Business Blog

Last year Maerklin, German manufacturer of high quality toy trains slipped into bankruptcy. As the Financial Times Germany reports, former US rival and market leader in the United States, Lionel has shown keen interest in acquiring the ailing German company. While there seemed to be tangible urgency to find a new owner originally, 2009 has been a surprisingly good year that renders smaller Lionel’s (sales 2009 about US$ 80 mio) offer just not good enough. With about EUR 110 mio in sales last year, Maerklin made it back into the profit zone and is flush with cash. It may have become more attractive for other investors which supposedly include Sun Capital. Ironically, Lionel has been through a bankruptcy itself in 2007 when it was snatched up by investment bank Guggenheim Partners.

As has been reported, the Kraft-Cadbury takeover battle is almost over. After Kraft has upped its offer, the board of British chocolatier Cadbury has approved the takeover. Only very few voices remain opposed to the deal now, including its founder’s, George Cadbury’s great-granddaughter, Felicity Loudon. In an interview she said that Kraft had no idea what Cadbury really is about and doesn’t want it to become the latest in a row of British companies being taken over by foreign owners (including Rolls Royce being owned by BMW of Germany, Manchester United owned by US investor Malcolm Glazer or Rowntree (maker of After Eight) being owned by Nestle of Switzerland).

Amsterdam-based brewer Heineken announced that it will acquire the beer operations of Mexican Femsa through an all-share transaction. The hope is not only to strengthen some of Femsa’s brands in Central and Latin American markets, but also to build out the premium market for Heineken’s own brand. And yes, as usual, there’s talk of cost-saving synergies.