Clearly that Renault has finished the merger of Nissan and up to now, it has achieved a lot
of achievements which help it not only enhance the technology and innovation. But both
Nissan and Renault were the first in the industry to have attempt to do this kind of merger,
there is not a systematic process in their pre-merger and post-merger practice. And as the
economy developes, more and more traditional Japanese companies are seeking
opportunities to get the investment from all over the world. Based on this view, in this
section, we will put forth our suggestions for the new Nissan and the other companies to
expand their business all over the world and overcome the culture shocks in their
pre-merger and post-merger process.
Pre-merger
The main purpose of M&A is to consider how the two companies can create greater value
for their shareholders and stakeholders after the merger. In order to improve the success
rate of merger, it is important to strengthen the efforts in integration. The critical success
factor of M&A is to make employees from both sides accept the culture differences and
achieve the common goal through a variety of means. Due to the reaction of the employees
from Nissan, it seemed that the company had done a good job in its pre-merger phase.
According to a number of studies, it shows that failures of M&A were always appeared in
post- merger. Because of the high percentage of failure in post-merger, even Nissan had
put a lot of efforts in the practice, the general manager ignored to get the human resource
management involved in pre-merger. From this perspective, suggestion for the pre-merger
work of Nissan work can be concluded as below:
Firstly, the companies should make a comprehensive due diligence. Except for the past
traditional financial analysis, analysis on the way to achieve a common vision seems to
become more significant. Secondly, the two companies should set up a merger research
team to analyze problems like the feasibility of the combined company, reflected value,
and post-merger integration processes before the merger. It is a prelude which can indicate
the contradictions after the merger when frictions and conflicts appears. The new Nissan
company had put this practice in its post-merger practice which may cause a lot of cost in
solving problems. It will be much smoother if the solutions can be detected and researched
earlier. The research team must reach a consensus on a common vision, build the core
