Creating a national champion or a global pharmaceutical company: a tale of French connection

Abstract

PurposeThe purpose of this illustrative case‐based research is to analyze and evaluate the 2004 controversial merger of two high‐profile French pharmaceutical companies, Sanofi‐Synthelabo and Aventis.Design/methodology/approachThis is a case‐based research paper that relates existing theory to mergers and acquisitions (M&As) and global strategies by highlighting those issues that impact business and industrial markets as well as multinational corporations' (MNCs) operations.FindingsSanofi‐Aventis continues to go through a multitude of changes in its corporate reorganization while Novartis has been exploring collaborative ventures with pharmaceutical and bio‐tech companies.Research limitations/implicationsThere is a scarcity of published work in the case‐based research area. The work provides an understanding of the French government's national champion initiatives and their impact on the European and global pharmaceutical companies.Practical implicationsThe findings of this case have tangible implications for those business marketers and MNCs that operate in the European markets and other countries regarding seeking M&As and expansion.Originality/valueThe case adds value in the national champion theory and its associated areas that relate to business and industrial markets.