Case Name :      CFR Pharmaceuticals: Potential Synergies in Africa

Authors :           Charlene Lew

Source :             Ivey Publishing

Case ID :            W14589

Discipline :        Organizational Behavior

Case Length :    14 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

The third-generation leader of CFR Pharmaceuticals had been successful in executing a strategy of consolidating pharmaceutical firms across Latin America. As part of the company’s expansion strategy, the CEO explored opportunities to develop multiple sources of growth and expand CFR Pharmaceutical’s footprint in emerging markets; to do this, he found a company in South Africa, Adcock Ingram, to acquire. The combined company would offer CFR product synergy and diversification, improved manufacturing and distribution capabilities and a unique emerging market footprint in 23 countries. In the process of making an offer of approximately US$1.2 billion to acquire the company, the CEO faced increased interest in Adcock from other potential acquirers. He also encountered a series of difficulties when an Adcock shareholder resisted the acquisition, but CFR maintained the consistent support of the Adcock Ingram board.