This is a media review of HR Management practices in Mergers and Acquisitions and how some of the well known M&As have transpired in the past.

2. AGENDA
• CASE STUDIES AND MEDIA REVIEW
• ABInBev
• Total S.A.
• INSIGHTS AND TAKE AWAYS
• Factors of Success and HR aspects in M&As
• Post M&A integration - Pros and Cons

3. CASE STUDIES &
MEDIA REVIEW

4. 2008
 Modern
 European
 Cost-
Cutting
 Traditional
 American
 Extravagant
Aim: To gain leadership in the Beer Market

5. The Outcome
USD 52 bIllion deal
Market cap: USD 63 billion (2011)
 1400 jobs slashed in the US
 InBev culture imposed
 Cost-cutting atmosphere
 Incentives based pay
 Executives replaced
 Another cost-cutting plan in 2010
“I thought the message from InBev was, if you don’t think we’re
serious, look at what we’re willing to destroy,”
Cheryl Stelter, 21-year A-B employee

6. 1999
 North Africa
 Middle East
 Western Africa
 Inshore
 Offshore
 Gas
Elf Aquitaine
Aim: To gain leadership position in oil industry

7. TOTAL S.A.
 USD 46 billon deal
 Market cap: USD 101 billion (2011)
 93,000 employees (2011)
 340 job cuts in senior management
 1313 job cuts in workforce
 All job cuts on incentive plans – no dry layoffs
 Pension schemes unified over 3 years under Total System

8. INSIGHTS

9. KEY THEMES IN THE MEDIA
 Layoffs
 Other cutbacks
 Culture Change
 Impact on the
community
 Financial
implications

10. HR ASPECTS & SUCCESS FACTORS
IN M&A
 Early preparation (strategy, costs, regulations)
 Coordinated commitment of all actors
 Lines and corporate functions including HR
 Follow-up on integration plan
 Degree of integration
 Corporate culture
 Compensations (in integrated corporations)
 Job cuts (when functions are redundant)

11. LONG TERM EFFECTS
 Uncertainty over Executive Turnover
 Political exposure: Employment &
Strategic assets

12. KEY TAKE AWAYS
• M&A: strategic and financial
• HR preparation required to prevent failure
• HR execution: key to long term success
• Local regulations: additional obstacles

13. QUESTIONS?